Goldman Sachs Upgrades Goodyear Tire & Rubber (GT) to Neutral; Challenges More Than Reflected

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Goldman Sachs upgraded Goodyear Tire & Rubber (NYSE: GT) from Sell to Neutral with a price target of $13.00.

Analyst, Patrick Archambault, said, "We upgrade GT driven by (1) a second derivative
improvement in replacement tire volumes in North America, (2) easing raw material pressures with our tire cost index down 22% since its recent peak, and (3) reduced near-term pension cash contributions helping liquidity."

"While we believe that Goodyear continues to face a number of challenges including weak demand in Europe, a high cost footprint, weak cash flows, and a significantly underfunded pension plan, at current levels, this is more than reflected in the share price in our view." (FY12 EPS estimate raised from $2.12 to $2.22, FY13 from $2.93 to $3.26)

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 $10.04 yesterday, with a 52 week range of $8.53-$18.25.

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