Axalta Coating Systems Pulled 2021 Guidance

Axalta Coating Systems Ltd. (NYSE:AXTA) made a pre-announcement on Tuesday, lowering its Q3/21 outlook and withdrawing its full 2021-year guidance due to ongoing supply disruptions and continued raw material inflation.

Analysts at RBC Capital decreased their price target on the company’s shares to $36 from $38, mentioning that they believe the underlying demand in the company's various end markets remains strong, despite the headwinds.

Given the company’s pre-announcement, the brokerage took down its Q3/2021/2022 EBITDA estimates to $191 million/$921 million/$990 million (from $202 million/$940 million/$1,030 million) due to ongoing supply chain disruptions which are resulting in lower auto production rates.