Goodyear Tire & Rubber Co. It could be the relative winner of President Donald Trump announced Tariffs on car imports, because most of the US request from domestic manufacturers and tires are not included in the planned levies, at least for now, according to data Deutsche Bankwho upgraded the tire seller to buy from Hold.
Read more:Trump says he hopes new tariffs will send customers to American cars
“Any negative impact on the sale of new vehicles should be mitigated by a much more mixture of better margins, replacement tires,” writes analyst Edison Yu, who continued to cover on Goodyear in December. “All in, there are risks in execution, but we believe that the company is okay to surgery to surpass the current assessment of the assessment at the level of the trough.”
The shares rose as much as 3.3% on Monday, but more than 30% were reduced from the highlight almost a year ago. Peers Autozone Inc and O’Reilly Automotive Inc. They also trade Higher Monday.
Bulishness comes after Goodyear is a permanent progress in her cost reduction program, with Deutsche Bank noted that the company also closed the sale of its business outside the Road gum, announced the sale of its intellectual ownership of Dunlop and reiterated the expectation that its chemicals would be completed before the end of this calendar year.
Yu sees future stock gains. It maintains a price of $ 13, which implies a jump nearly 50% from where the shares closed on Friday and ranked the most on Wall Street. The average goal of 12 months is about $ 12. Goodyear is currently trading $ 8.95.
The shares also have five purchases, five holders and zero sales.
“Our conversations with the company have given an additional belief that it has the necessary attraction to achieve a target $ 1.5 billion in costs and improvements of margins by the end of 2026,” Yu reports.
This story is originally shown on Fortune.com
