BMO Capital downgraded Axalta Coating (AXTA) to Market Perform from Outperform with a price target of $33, down from $51. The firm sees smarter cars increasing as a headwind to volumes for the repair and refinish industry. BMO’s review of autonomous vehicle safety trends points to a “potential tipping point” that could result in a steeper reduction in accident rates going forward. This dynamic, coupled with pressures around insurance, may continue to shrink refinish volumes, driving the downgrade of Axalta, the analyst tells investors in a research note.
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