As previously reported, BofA/Merrill downgraded Magna two notches to Underperform from Buy and cut its price target to $36 from $54. Analyst John Murphy said the Trump victory and Republican sweep of Congress will result in a "significant" disruption in auto volumes given Trump's goal to renegotiate NAFTA and other relationships. Murphy said Magna has almost 20% of total sales to Canada and a massive restructure or elimination of NAFTA would have "far reaching" repercussions on the US auto industry, potentially freezing close to 5M vehicles imported/exported between the US, Canada, and Mexico.