In a report released today, Wesley Brooks from HSBC downgraded GoodYear Tire to a Hold, with a price target of $9.50.
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Wesley Brooks has given his Hold rating due to a combination of factors affecting GoodYear Tire’s financial outlook. Despite some restructuring efforts, the anticipated savings have not had the expected impact on the company’s financial performance. Brooks notes that while there is potential for earnings improvement by 2026, recent results have cast doubt on the likelihood of a significant rerating of the stock.
GoodYear’s recent earnings were below expectations, influenced by declining volumes and unfavorable pricing compared to raw material costs. Although the company anticipates some improvement in pricing versus raw materials in the latter half of the year, the higher tariff burden remains a concern. Additionally, while cost savings have been achieved, they are largely offset by cost inflation and other expenses, leading to a reduction in projected operating income margins. As a result, Brooks has lowered the target price and downgraded the stock to Hold, reflecting skepticism about the sustainability of earnings improvements.
According to TipRanks, Brooks is a 3-star analyst with an average return of 12.7% and a 68.42% success rate.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $8.50 price target.