Jim Cramer Discusses What “People Don’t Realize” About Axalta (AXTA)

We recently published 13 Stocks That Crossed Jim Cramer’s Radar. Axalta Coating Systems Ltd. (NYSE:AXTA) is one of the stocks Jim Cramer discussed.

Axalta Coating Systems Ltd. (NYSE:AXTA) was in the news earlier this week after Dutch paint and chemical giant Akzo Nobel announced that it would merge with the firm to create a combined entity worth $25 billion. The deal came amidst a global economy struggling with high interest rates and costs. Cramer has discussed this sector previously and called it the ‘real economy’ to compare it with the stock market sector that deals with technology, AI, and data center companies. In this appearance, he discussed Axalta Coating Systems Ltd. (NYSE:AXTA)’s deal and raised an interesting point regarding the firm and the deal’s perception:

“[After David Faber commented that he liked the deal] Yeah I’ll tell you why. First of all, because this deal would have killed last night by Biden’s administration. But I think a lot of people don’t realize, this is more, a lot of people compare it to Sherwin-Williams. . .that’s mostly home. This is coating. So it’s more like PPG, and yet it sells at a discount to PPG. So I like the idea that PPG is the benchmark about what could happen here. It’s a very very good company and people don’t realize, that this is the kind of thing that, it makes it a powerhouse right this morning. So I do like it very much. And yes, I do quiz them about whether the Philadelphia office is real because we have almost no companies headquartered in Philadelphia.”

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Disclosure: None. This article is originally published at Insider Monkey.