UPDATE: Goldman Sachs Upgrades Goodyear Tire & Rubber to Neutral
Goldman Sachs raised its rating on Goodyear Tire & Rubber (NYSE: GT) from Sell to Neutral on attractive risk/reward at current levels. Price target on shares stays at $13.
Goldman Sachs said, "We upgrade GT to Neutral from Sell driven by (1) a second derivative improvement in replacement tire volumes in North America, (2) easing raw material pressures with our tire cost index down 22% since its recent peak, and (3) reduced near-term pension cash contributions helping liquidity. Our six-month, multiples-based price target remains $13. Our new 2012/2013 estimates are 14%/32% above consensus and with the stock trading at 2.8X 2012E EBITDA; we believe valuation is far from onerous."
Goodyear Tire & Rubber closed at $10.04 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.