Deutsche upgrades Goodyear to Buy on cost savings traction

Deutsche Bank analyst Edison Yu upgraded Goodyear Tire (GT) to Buy from Hold with a $13 price target The company closed its off-the-road tire business, announced the sale of its Dunlop intellectual property, and reiterated the timeline of its chemicals divestiture, the analyst tells investors in a research note. The firm says its conversations with management have given it further confidence that Goodyear has the “necessary traction” to achieve its targeted $1.5B in cost savings and margin improvement by the end of 2026. Meanwhile, the company should be a “relative winner” from tariff policies, since most of its U.S. demand is served by domestic manufacturing and tires, contends Deutsche Bank. The firm believes any negative impact on new vehicle sales should be offset by Goodyear ‘s higher mix of better margin replacement tires.