BMO Capital analyst John McNulty upgraded Axalta Coating Systems to Outperform from Market Perform with a price target of $35, down from $38. The shares have been weak on concerns that the company's strategic review might result in no deal, McNulty tells investors in a research note. While that may be the case, with management not calling off the review when reporting Q4 results, Axalta's risk/reward is positive, contends the analyst. He believes the current valuation "nearly reflects a no-deal decision anyway" and sees greater than 20% potential share upside. If there was "virtually nothing in the hopper," management would have formally ended the review with the Q4 earnings, says McNulty.