In a recent analyst update, Bernstein lowered its rating on AkzoNobel to market perform, citing rising questions about the company’s planned all-stock merger with Axalta Coating Systems. The analyst report pointed to potential changes in deal structure due to Axalta shareholder pressure, regulatory review or competing interest from other parties.

Bernstein also noted execution risks associated with completing a transaction of this scale. The combined value of the proposed merger is roughly $25 billion. The firm reduced its price target for AkzoNobel shares from 64 euros to 59 euros.

In its commentary, Bernstein said it sees a stronger alternative within the coatings sector, highlighting PPG as a more compelling investment based on portfolio mix. According to the firm, PPG holds higher exposure to aerospace and lower exposure to automotive refinish, sectors it views as more favorable for near-term growth.

LSEG data shows that among 17 analysts covering AkzoNobel, 10 rate the stock as strong buy or buy, six rate it hold, and one rates it sell.

Sources: Bernstein downgrades AkzoNobel on Axalta merger worries, Market Screener

This announcement reflects publicly available market commentary and analyst actions related to the proposed AkzoNobel and Axalta merger. This report includes publicly sourced financial and market analysis and does not reproduce proprietary content.

PCI Staff recently weighed in on the announcement below and how it could shape the industry at large. Read that analysis here. Additionally, PCI Chief Editor reviewed the first week of reactions here. Two more stories about investor reactions can be found here: Cevian Capital Reportedly Backs the AkzoNobel–Axalta Merger and Shapiro Capital Questions Akzo-Axalta Merger Terms

For more industry movement and consolidation trends, see PCI’s coverage of Market Reports.