What Makes Axalta (AXTA) Attractive

Axalta Coating Systems (NYSE:AXTA) is one of the best Materials stocks to invest in according to Hedge Funds.

On January 7, RBC Capital analyst Arun Viswanathan revised his price target for Axalta Coating Systems (NYSE:AXTA) from $30 to $33, and maintained a Sector Perform rating on the stock.

Viswanathan’s upward revision in price target comes on the back of S&P’s latest projections for global auto production. The analyst noted a slight sectoral recovery and accordingly has kept his EBITDA estimates for Axalta Coating Systems (NYSE:AXTA) intact. He has forecast $284 million in EBITDA for Q4, resulting in a total 2025 EBITDA of $1.14 billion. For 2026, the analyst expects this figure to grow to $1.18 billion and has also raised his forward EV/EBITDA valuation multiple from 8.5x to 9x.

On January 7, Kevin McCarthy from Vertical Research downgraded his rating on Axalta Coating Systems (NYSE:AXTA) from Buy to Hold. However, the analyst estimated a price target of $37, which still offers a double-digit upside potential of above 11%.

Axalta Coating Systems (NYSE:AXTA) develops, markets, and sells high-performance coating systems for construction, industrial, mobility, and energy applications. The business is segregated into two segments, i.e., performance coatings and mobility coatings. It also offers products for repairing damaged vehicles, OEMs, and body shop dealerships.

While we acknowledge the potential of AXTA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.