NEW YORK (TheStreet) -- Deutsche Bank initiated coverage on Axalta Coating Systems (AXTA) - Get Report stock with a "buy" rating and a price target of $32.

With Axalta holding a number one global position in refinish, which leads growth in Axalta's largest segment, performance coatings, Axalta has a strong base from which to grow, Deutsche Bank said about the Philadelphia-based coatings and paint systems company.

The formation of Axalta as a pure play coatings company uncovered an untapped potential and is now shedding new light on an already favorably viewed coatings industry, where Axalta is strongly positioned, they added.

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Analysts noted that 90% of Axalta's revenue stems from markets where it has a number one or number two position.

Shares of Axalta Coating Systems closed up 0.79% at $26.94 on Friday.

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