BofA/Merrill analyst John Murphy downgraded Lea to Underperform from Neutral and cut its price target to $110 from $136. The analyst lowered US sales and North American production forecasts saying year-to-date sales tracking down 2%, following a likely peak in 2016, and there is a "looming tsunami" of off-lease volumes that will hit the industry in 2018, further pressuring vehicle pricing. As a result, Murphy expects a quick and material downturn in the US auto cycle and lowered estimates across the industry. For Lear, the analyst expects favorable volume, price, mix, and low raw material tailwinds to reverse, pressuring earnings.