AXTA - Axalta downgraded at Deutsche Bank seeing consensus estimates too high

Axalta Coating Systems (NYSE:AXTA) -4.4% pre-market after Deutsche Bank downgraded shares Monday to Hold from Buy with a $27 price target, cut from $34, saying Q2 and FY 2022 consensus estimates are too high given persistent raw material inflation and supply chain constraints. Deutsche Bank analyst David Begleiter expects estimates for the chemicals company will be revised downward following its Q1 earnings release on April 26, and sees the substantial earnings ramp and margin expansion Wall Street was forecasting starting in H2 2022 to be pushed into H1 2023. Given the lack of a near-term earnings catalyst, Begleiter thinks Axalta (AXTA) shares will trade rangebound over the next few months until there is greater clarity on when earnings might inflect. Axalta (AXTA) likely is in a transition year as it will take time to pass on the costs to the end user, The Investment Doctor wrote in a bullish analysis

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Axalta downgraded at Deutsche Bank, seeing consensus estimates too high