UPDATE: Citigroup Lowers Target on Goodyear to $21
Citigroup cuts its target on Buy-rated Goodyear (NYSE: GT) on intact earnings power and favorable risk/reward. It cuts the price target on shares on FX and inflation concerns, among others.
Citigroup says, "Although Goodyear remains on track to achieve its 2013 segment operating income target ($1.6bln vs. $1.4 in '11), 2012 is seeing increased headwinds from unfavorable FX, China start-up costs, a flattish volume environment and broader inflation. The good news is that most of these issues are either transitory or beyond the company's control, and we still expect price/mix to exceed raw material inflation. Net-net, Goodyear's earnings power remains unchanged."
GT closed at $13.16 a share on Wednesday.
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