Goodyear Tire & Rubber (GT) Well Positioned as Deal Closes Early and KeyBanc Data Remains Strong

KeyBanc analyst James Picariello reiterated an Overweight rating and $23.00 price target on Goodyear Tire & Rubber (NASDAQ: GT) noting that the early close of the Cooper Tire deal is likely to benefit profitability considering the immediate accretion in 2021 and 2022. Additionally, the Keybanc credit card data showed another monthly increase from its all time high in March.

The analyst stated "Our Sell-Out Tracker (Key First Look Data) in May increased +3.4% y/y (QTD +20.0%), following March's all-time high and April's near-record strength (May only -6.8% m/m). Importantly, our Sell-Out Tracker continues to trend well above 2019 levels (May +15% vs. 2019; YTD +17%), which we believe serves as a key barometer in support of GT's tire production likely remaining at/above 2019 plant volumes through year-end. We reiterate our view of a favorable setup for tire producers amid the replacement channel's currently low inventory levels coupled with intact, strong demand, and are now raising our 2021 industry sell-in forecast to +12% growth (from +7%)."

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 $18.28 yesterday.

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