- Axalta's reliance on auto refinish will lead to a slower post-pandemic recovery relative to coatings companies more exposed to architectural, auto OEM, and/or industrial markets.
- Management successfully completed a cost reduction program, but additional restructurings, internal R&D-led growth initiatives, and growth M&A could still be on the way.
- Axalta has been a rumored buyout target since 2017, and a deal could still make strategic sense to multiple bidders.
- Axalta's growth and margins can support a mid-$30's fair value, making the shares worth further due diligence.
For further details see:
Eventual Post-Pandemic Normalization And Better Margins Can Support A Higher Price For Axalta