Deutsche Bank Upgrades Goodyear Tire & Rubber (GT) to Buy
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Deutsche Bank upgraded Goodyear Tire & Rubber (NASDAQ: GT) from Hold to Buy with a price target of $37. Analyst Rod Lache highlighted the company's strong free cash flow.
"We believe that Goodyear is in a position to provide 3 compelling investment arguments at their upcoming CMD: 1) A credible forecast supporting continued 10%+ SOI growth; 2) A relatively defensive position (80% revenue from tire replacement; mix positives largely “pre determined”); and 3) GT appears poised for significantly increased cash payouts to equity shareholders. 90% of GT’s free cash flow has gone to debt or pension in the past 2 years. But going forward, almost all of the ~$1bn per year free cash flow may be directed to shareholders. It is this last point in particular that leads us to upgrade to buy, and raise our TP to $37 (8.5x our upwardly revised 2017 estimate)," said the analyst.
Shares of Goodyear Tire & Rubber closed at $29.73 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rosenblatt Upgrades NETGEAR (NTGR) to Buy
- Jefferies Raises Price Target on Coca Cola (KO) to $46 Following 3Q; Reaffirmed Guidance
- Jefferies Cuts Price Target on VCA Antech (WOOF) Following 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!