2023-04-24 06:38:30 ET
CFRA has a Buy opinion on Goodyear Tire & Rubber Company ( NASDAQ: GT ) due to what it sees as a favorable risk/reward for the tire giant following the lackluster share price performance with investors concerned over rising raw material costs and weak global auto sales. Shares of GT have fallen 22% over the last 52 weeks to trail broad market and sector averages.
Analyst Garrett Nelson said Goodyear Tire ( GT ) is successfully passing through higher prices to consumers and thinks favorable travel trends could support demand.
The firm notes replacement tire sales volume comparable turning more favorable in 2023.
CFRA's 12-month target of $14 represents a price-to-earnings ratio of 7.6X applied to the 2024 EPS estimate. That PE is called a justified discount to the stock's five-year mean forward P/E of 9.7X.
More on Goodyear Tire & Rubber:
- Read the latest analysis on Procter & Gamble from Seeking Alpha analysts
- View the growth metrics
- See the comparison to sector peers
- Dig into the Seeking Alpha Quant Rating
- Read the recent earnings call transcript
For further details see:
Goodyear Tire & Rubber is tipped by CFRA for share price breakout