Goodyear Tire & Rubber Company (GT) is one of the largest tire manufacturing companies around the world. The company expects to benefit from new product launches and cost reduction programs. It has targeted $1 billion of gross savings by 2012. The company also expects the global tire industry to continue to grow in full year 2011.
In the third quarter of 2011, the company's profits jumped to $0.72 per share from $0.13 per share in the 2010 quarter, which was also significantly higher than the Zacks Consensus Estimate of $0.25 per share. Therefore, we have upgraded our recommendation on the stock from Neutral to Outperform.
Our Outperform recommendation on the stock indicates that it would perform better than the overall market. Our $17 target price, 7.8X 2011 EPS, reflects this view.
GOODYEAR TIRE (GT): Free Stock Analysis Report
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