CR - Goodyear Tire is tipped by Deutsche Bank for short-term rally

2023-07-26 09:43:30 ET

Deutsche Bank added Goodyear Tire & Rubber Company ( NASDAQ: GT ) to the firm's short-term Catalyst Call Buy List in reaction to the announcement of new board additions and an operational review committee.

Analyst Emmanuel Rosner: "We believe the agreement announced yesterday to add to its Board of Directors, as suggested by Elliott Management, and even more so, the constitution of a Strategic and Operational Review Committee to explore strategic options for the company, could potentially help unlock considerable shareholder value."

The tire giant worked out an agreement with activist investor Elliott Management that included adding CSX ( CSX ) CEO Joseph Hinrichs, Crane Company ( CR ) CEO Max Mitchell, and Tenneco CEO Roger Wood to the board. With the appointments, the Goodyear ( GT ) board is composed of 15 directors, 13 of whom are independent. Goodyear ( GT ) said it will nominate up to 12 directors to stand for election at its 2024 annual meeting, including the three new directors.

Goodyear ( GT ) is expected to report earnings early in August.

Shares of GT rallied 2.61% in early trading on Monday and are more than 20% higher over the last six weeks.

More on Goodyear Tire & Rubber:

• Growth metrics on Goodyear Tire & Rubber
• Valuation metrics on Goodyear Tire & Rubber
• Dividend grades on Goodyear Tire & Rubber

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