MGDDF - Michelin preferred by UBS over Goodyear in the tire sector

Morgan Stanley lowers Goodyear Tire & Rubber (GT) to an Equal-weight rating from Overweight on a call tied to valuation. A price target of $16 is established by MS on Goodyear, which works out to 9X the 2022 EPS estimate or 7X the post-deal EPS when synergies are factored in. Analyst Victoria Greer says she prefers Michelin (MGDDF) in the tire sector space after the recent rally in GT's share price (+64% YTD). Over the long haul, Greer sees incremental savings for Goodyear Tire & Rubber from the Cooper deal as some tire plants are closed. Both Goodyear and Michelin are expected to benefit from the strong industry pricing environment. Compare Goodyear and Michelin side by side.

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Michelin preferred by UBS over Goodyear in the tire sector