Cooper Tire & Rubber (CTB) is making a concerted effort to reduce costs and increase efficiency in each of its plants in order to mitigate pressure on margins. Moreover, the company's North American operation is also performing well.
In the most recent quarter, Cooper Tire posted a significant increase in profits to $74.1 million or $1.17 per share from $17.3 million or $0.27 in the year-ago quarter. With this, it has beaten the Zacks Consensus Estimate by a commendable margin of $0.30.
As such, we have upgraded the recommendation on the shares of the company to Outperform from Neutral and set a target price of $29.00.
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