‘We See Current Valuation as Attractive’: Barclays Pulls the Trigger on 2 Overlooked Stocks
Barclays analyst Aleksey Yefremov identifies Axalta Coating Systems (AXTA) and PPG Industries (PPG) as attractive investments in the coatings industry. The sector is projected to grow to $144.79 billion by 2034. AXTA is set to merge with AkzoNobel, with Yefremov expecting transformational benefits. PPG, a leader in paints and coatings, has a diverse product portfolio. Both stocks are seen as having double-digit upside potential.
How this was made
The 30-second read
Why it matters
The analyst’s Overweight rating for Axalta and inclusion of PPG provide fresh buy-side catalysts that could drive short‑term price appreciation.
Market read
Analyst endorsement of two major coating firms may spark buying interest and lift the sector, especially as raw material costs stabilize.
What to watch
Potential integration risks of the AkzoNobel merger and slower-than-expected volume recovery.
Background
Barclays analyst Aleksey Yefremov identifies two undervalued coatings companies, Axalta and PPG, as attractive investments amid a tentative industry recovery.
Ticker impact
Barclays analyst upgrades Axalta Coating Systems to Overweight with a $45 price target, citing the pending AkzoNobel merger and expected margin recovery.
likely upward pressure as investors price in the merger and target price.
The upgrade is fresh, includes a concrete price target and synergy expectations, which can move the stock immediately.
Barclays analyst includes PPG Industries in a list of two attractive coatings stocks, highlighting its market leadership and diversified product portfolio.
moderate upward pressure as the stock gains attention from the recommendation.
The mention is less detailed than for Axalta but still a fresh analyst endorsement.
Market effects
Highlights potential recovery in the broader industrial coatings sector, which may lift peer valuations.
U.S. industrial and automotive markets could see modest benefit from improved coating demand.
The AkzoNobel merger creates a larger global player, possibly influencing European coating peers.
Counterpoint
The sector remains exposed to raw material cost volatility, which could dampen upside.
Key entities
- CompanyAxalta Coating Systems
U.S. industrial coatings specialist (ticker AXTA).
- CompanyPPG Industries
Global paints and coatings leader (ticker PPG).
- CompanyAkzoNobel
European coatings giant involved in a pending merger with Axalta.
