KeyBanc Downgrades Cooper Tire & Rubber (CTB) to Hold, Cites Tariff Uncertainty
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Price: $25.31 -2.01%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade CTB Now!
KeyBanc downgraded Cooper Tire & Rubber (NYSE: CTB) from Buy to Hold.
The firm cited: 1) the expiration of the Chinese tariff is creating a great deal of uncertainty among industry participants as to the ultimate impact on pricing and volumes, which is likely to weigh on tire stocks in the near term; 2) tire pricing is currently declining slightly more than we had previously thought, which will narrow the positive price/mix vs. raw material spread for CTB and GT in 4Q12; 3) while lower priced tire volumes will likely benefit from the expiration of the tariff, tire dealers and wholesalers appear likely to restrain mid-high price tire orders until prices decline further; 4) raw materials appear to have bottomed at what we believe are unsustainably low levels, which will reverse at some point, causing the price/mix vs. raw material spread to narrow further; and 5) stock prices have risen materially in recent months largely discounting an improving near-term earnings outlook, driven primarily by a substantial decline in raw materials, some degradation in tire pricing and relatively stable volumes.
For an analyst ratings summary and ratings history on Cooper Tire & Rubber click here. For more ratings news on Cooper Tire & Rubber click here.
Shares of Cooper Tire & Rubber closed at $21.99 yesterday, with a 52 week range of $9.64-$23.40.
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The firm cited: 1) the expiration of the Chinese tariff is creating a great deal of uncertainty among industry participants as to the ultimate impact on pricing and volumes, which is likely to weigh on tire stocks in the near term; 2) tire pricing is currently declining slightly more than we had previously thought, which will narrow the positive price/mix vs. raw material spread for CTB and GT in 4Q12; 3) while lower priced tire volumes will likely benefit from the expiration of the tariff, tire dealers and wholesalers appear likely to restrain mid-high price tire orders until prices decline further; 4) raw materials appear to have bottomed at what we believe are unsustainably low levels, which will reverse at some point, causing the price/mix vs. raw material spread to narrow further; and 5) stock prices have risen materially in recent months largely discounting an improving near-term earnings outlook, driven primarily by a substantial decline in raw materials, some degradation in tire pricing and relatively stable volumes.
For an analyst ratings summary and ratings history on Cooper Tire & Rubber click here. For more ratings news on Cooper Tire & Rubber click here.
Shares of Cooper Tire & Rubber closed at $21.99 yesterday, with a 52 week range of $9.64-$23.40.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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