Berenberg Bullish on AkzoNobel Amid Planned Axalta Merger; Price Target Up

07:03 AM EST, 01/06/2026 (MT Newswires) -- Berenberg remains upbeat on AkzoNobel's (AKZA.AS) planned merger with US-based paint manufacturer Axalta Coating Systems, saying it is "comfortable" with the Dutch paint and coatings producer's guided synergy potential as a result of the deal. "Axalta has form when it comes to raising margins, which could benefit AkzoNobel, in our view. Axalta raised its EBITDA margins from low-mid-teens to low-20 percentages between 2011/12 and the late 2010s; EBITDA per employee rose by over 20%. We believe this sets a promising precedent for legacy AkzoNobel," the research firm said Tuesday, maintaining the buy rating on the stock while bumping up the price target to 75 euros from 74 euros. Meanwhile, analysts revised their financial estimates, including mid-single-digit percentage cuts to EPS projections for 2025 through 2027, reflecting a combination of currency headwinds and the removal of the 400 million-euro buyback assumed for 2026, among other factors. AkzoNobel and Axalta agreed on an all-stock merger of equals in November 2025, in a deal that would create a global coatings company with an enterprise value of $25 billion. The combination is anticipated to generate $600 million in pre-tax run-rate cost synergies following deal completion, which is expected between late 2026 and early 2027.