Axalta Coating Systems (AXTA) is faced with concerns around the volumes of Refinish, its largest business, Deutsche Bank said in a report Friday.

"Concerns and questions around Refinish volumes will remain an overhang for the foreseeable future and likely limit Axalta's absolute and relative share price performance," Deutsche analyst David Begleiter said.

The analyst said the business has never been a fast growing one, but it has taken a step back in the past few years, with the refinish industry posting nine straight quarters of lower demand due to lower industry collision claims.

"We expect no near-term improvement in refinish volumes as insurance claims data continue to post declines in North America and Europe and consumer confidence weakens," Begleiter said.

Deutsche Bank downgraded the stock to hold from buy and cut its price target to $32 from $38.

Price: 29.77, Change: -0.31, Percent Change: -1.01