PHILADELPHIA - Axalta Coating Systems (NYSE: NYSE:AXTA), an $8 billion market cap global player in the coatings industry with a "GREAT" financial health rating according to InvestingPro, and Dürr Systems AG, a specialist in mechanical and plant engineering, have announced a strategic partnership to advance digital paint technology. The collaboration will see the integration of Axalta's NextJet™ technology with Dürr's robotic systems to enhance paint application for light vehicle Original Equipment Manufacturers (OEMs).
The agreement positions Dürr as the robotics integrator for Axalta's NextJet™, which promises a maskless, overspray-free application process for more precise paint placement. The technology aims to streamline the painting process for two-tone designs and graphics on vehicles, a task that requires close cooperation between coatings expertise and robotics precision.
Hadi Awada, President of Global Mobility Coatings at Axalta, emphasized the collaborative nature of the partnership, stating, "Through our partnership with Dürr, we can better serve OEM customers, building on Axalta's coatings know-how and Dürr's robotics integration."
Dr. Lars Friedrich, CEO of Dürr Systems AG, echoed the sentiment, expressing enthusiasm for the joint venture and its potential to expedite the market introduction of the next generation of digital paint, fulfilling OEMs' demands for unique vehicle designs.
This partnership builds on previous advancements in digital paint technology. In 2023, Axalta and Xaar announced a similar collaboration, with Xaar continuing to play a crucial role in the digital paint solutions offered to the OEM market by Axalta and Dürr.
Demonstrations of Axalta NextJet™ using Dürr's robotic systems have commenced at Dürr's test center in Bietigheim, Germany. OEMs interested in this technology can contact representatives from either Dürr or Axalta for more information.
The partnership leverages the strengths of both companies—Axalta's 150-year legacy in the coatings industry and Dürr's expertise in automation and digitalization. With annual revenues of $5.26 billion and a healthy current ratio of 2.0, Axalta brings significant financial strength to this strategic move that promises innovative solutions to the automotive manufacturing process. According to InvestingPro analysis, the company is currently trading near its Fair Value, suggesting the market has appropriately priced in its growth potential and strategic initiatives.
This news is based on a press release statement, outlining the collaboration between Axalta Coating Systems and Dürr Systems AG to enhance digital paint application in the automotive industry.
In other recent news, Axalta Coating Systems and Sherwin-Williams (NYSE:SHW) have been the focus of various analyst adjustments and significant company developments. Axalta has seen a range of price target revisions from various firms. BMO Capital raised its target to $48.00, Evercore ISI set a target of $47.00, and RBC Capital increased its target to $46.00, all maintaining an Outperform rating. However, Citi downgraded Axalta from Buy to Neutral, citing potential challenges in the commercial vehicle and industrial coatings sectors.
On the other hand, Sherwin-Williams experienced a slight reduction in its price target from RBC Capital Markets to $438, though the firm maintained its Outperform rating. The revised target reflects expectations for a fourth-quarter performance that aligns with predictions and forecasts growth in EBITDA and EPS for the fiscal year 2025.
Axalta has demonstrated consistent global market share gains in the Refinish and Auto OE platforms, contributing to an upgrade from Wolfe Research. The company also successfully renegotiated the terms of its existing credit agreement, lowering the interest rate spread on the term loan from 2.00% to 1.75%.
Sherwin-Williams is expected to benefit from volume growth due to anticipated interest rate cuts, which could increase new and existing home sales in fiscal year 2025. The company's financial strategy remains focused on staying within its long-term leverage target range of 2.0x to 2.5x. These are some of the recent developments in both companies.
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