Goodyear Tire & Rubber (GT) PT Lowered to $13 at CFRA

CFRA analyst Garrett Nelson lowered the price target on Goodyear Tire & Rubber (NASDAQ: GT) to $13.00 (from $15.00) while maintaining a Strong Buy rating.

The analyst comments "We lower our 12-month target by $2 to $13, based on a 2026 P/E of 8.7x, a justified discount to GT's 10-year mean forward P/E of 13.0x. We lower our adjusted EPS estimates to $0.70 from $1.25 for 2025 and to $1.50 from $1.75 for 2026. Following a highly disappointing Q2 earnings release, we are maintaining a Strong Buy opinion on the shares. In short, we viewed Q2 as representing a speed bump in the story, as the detrimental impact of low-cost tire imports wasn't appreciated by the Street, but we think GT is continuing to make tangible progress toward sustainable earnings improvement. In our view, investors need to remain patient with the story we remain confident that an earnings breakthrough is eventually coming as the company continues to drive efficiencies, benefits from lower input costs, and reduces net debt (already down $636M in the past year). Two asset sales have generated gross proceeds of $1.64B so far in 2025, and a third (the Chemicals business) is expected to generate an additional $650M."

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