UPDATE: Goldman Sachs Upgrades Goodyear Tire & Rubber to Buy

Goldman Sachs upgraded Goodyear Tire & Rubber (NYSE: GT) from Neutral to Buy rating with a $17 price target.

Goldman Sachs said, "We are upgrading shares of Goodyear to Buy from Neutral previously as we see the company benefitting from improving replacement volumes in NA and EU, a tailwind from lower raw material costs and a significantly improved profitability profile especially in North America. We see upside risk to GT's 2013 SOI target of $1.6bn and while investors might have to be patient in terms of FCF given the sizeable contributions that GT intends to make to its pension plans, we expect the company to be solidly FCF positive by 2014."

Goodyear Tire & Rubber closed at $11.99 on Wednesday.

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