- Credit Suisse analyst John Robers initiated coverage on Axalta Coating Systems Ltd (NYSE:AXTA) with an Underperform rating and a $20 price target.
- Robers also initiated Univar Solutions Inc (NYSE:UNVR) with an Outperform rating and a $31 price target.
- While not direct competitors, they are two of the largest companies with a regional business model and a focus on industrial markets.
- Given the prospect of a global economic downturn, he was cautious about AXTA due to its high exposure to the auto OEM (~30% of sales) and general industrial (~30% of sales) end markets.
- The consensus expectation is for pent-up demand to support auto production in a potential downturn and rising interest rate environment, with any pullback in volume offset by a decline in raw materials (i.e., oil).
- He believed there was a greater probability that this could be the first downturn without a drop in oil prices than the first downturn without a decline in auto production.
- His 2023 and 2024 EBITDA estimates are nearly 8% below consensus.
- Price Action: AXTA shares traded higher by 2.70% at $23.40 on the last check Friday.
Tempur Sealy Intl Q3 EPS $0.78 Beats $0.75 Estimate, Sales $1.28B Miss $1.29B Estimate
Tempur Sealy Intl (NYSE:TPX) reported quarterly earnings of $0.78 per share which beat the analyst consensus estimate of $0.75 by 4 percent. This is a 11.36 percent decrease over earnings of $0.88 per share from the same
