Deutsche Bank Downgrades Goodyear Tire & Rubber (GT) to Neutral

October 21, 2013 7:00 AM EDT
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Price: $30.39 -0.49%

Rating Summary:
    10 Buy, 2 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Deutsche Bank downgraded Goodyear Tire & Rubber (NASDAQ: GT) from Buy to Neutral with a price target of $26.00 (from $29.00), citing a uncertain margin outlook due to new tire capacity and record high capex levels.

"We have increasingly focused our attention on the steady drumbeat of new tire capacity announcements, and the record high levels of capex from the Global Tire Industry," analyst Rod Lache notes. "Based on this, we have revisited our proprietary Global Tire Industry Supply/Demand analysis. Our conclusion is that the mid-term (i.e. 2-3 years) outlook for margins (due to supply/demand and competitiveness) may not be as clear as it has been in over the past 2-3 years. While we still see Goodyear's shares as attractively valued based on our near term estimates, intermediate term uncertainty leads us to take a more Neutral stance on Goodyear's shares."

For an analyst ratings summary and ratings history on Goodyear Tire & Rubber click here. For more ratings news on Goodyear Tire & Rubber click here.

Shares of Goodyear Tire & Rubber closed at $22.63 yesterday.

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