UPDATE: Deutsche Bank Downgrades The Goodyear Tire & Rubber Company to Hold, Lowers PT on Revisited Supply/Demand Analysis

In a report published Monday, Deutsche Bank analyst Rod Lache downgraded the rating on

from Buy to Hold, and lowered the price target from $29.00 to $26.00. In the report, Deutsche Bank noted, “We have increasingly focused our attention on the steady drumbeat of new tire capacity announcements, and the record high levels of capex from the Global Tire Industry. Based on this, we have revisited our proprietary Global Tire Industry Supply/Demand analysis. Our conclusion is that the mid-term (i.e. 2-3 years) outlook for margins (due to supply/demand and competitiveness) may not be as clear as it has been in over the past 2-3 years. While we still see Goodyear's shares as attractively valued based on our near term estimates, intermediate term uncertainty leads us to take a more Neutral stance on Goodyear's shares.” The Goodyear Tire & Rubber Company closed on Friday at $22.63.