The Philadelphia-based holding company is a manufacturer, marketer and distributor of coating systems primarily for the transportation industry.
"Refinish should continue to perform well in the near to intermediate term due to increased miles driven and MSO consolidation; CSe auto refinish is > 55% of AXTA's profitability," the firm wrote in an analyst note.
"Auto OEM should be mixed as a disappointing NA SAAR garners some caution; consumer shifts towards trucks/SUVs should cushion potential risks," Credit Suisse added.
The firm believes investors will turn increasingly cautious on the European auto sector due to the U.K. leaving the European Union. But Axalta should face easier comparable sales in the region in the second half of the year, according to Credit Suisse.
Shares of Axalta closed at $26.09 on Friday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity.
But team also finds weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AXTA