JPMorgan says shares of this American tiremaker can rally 60% as tariffs hit competitors
JPMorgan is bullish on Goodyear Tire & Rubber , as the company is not only executing on its transformation plans but can also serve as a hideout from tariff pressures. Analyst Ryan Brinkman assigned an overweight rating to the stock. He also lowered his year-end price target by $1 to $17, but that still suggests shares could gain 61.9% from Wednesday's close. Hype has been building around Goodyear Tire's major transformation efforts , which were revealed after activist investor Elliott Investment Management took a stake in the company in 2023. Goodyear's "Goodyear Foward" two-year transformation plan ends in December, but is ahead of schedule for its benchmarks, the company has said. The plan includes implementing top-line and cost reductions of $1.5 billion, doubling operating income margin to 10% and significantly reducing the company's debt load. GT 1Y mountain Goodyear stock performance. Brinkman thinks these changes will lead to stronger earnings and greater debt deleveraging for the company. He also highlighted that Goodyear can manage tariff pressures better than rivals given its significantly U.S. manufacturing footprint. "There is the new kicker of potentially material price and/or share gains emanating from Goodyear's best-in-class positioning vis-à-vis recently imposed tariffs," the analyst said in a Thursday note to clients. "The higher earnings in combination with lower-than-expected Goodyear Forward restructuring costs contribute to a delevering process that is being significantly catalyzed by a strategy to dispose of non-core assets, which we assess is also running ahead of plan," he added. Analysts are split on Goodyear. LSEG data shows that of the 11 analysts covering the stock, six rate it a strong buy or buy, while five have a hold rating on shares.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
JPMorgan raises its year-end S&P 500 target, but sees little upside left
Strong earnings and a resilient economy amid extreme policy uncertainty this year have uplifted JPMorgan's view on U.S. equities. Head of global markets strategy Dubravko Lakos-Bujas raised his year-end S & P 500 price target to 6,000 from 5,200. The strategist cited an "encouraging fundamental backdrop" that alleviated investors' concerns about tariffs' impact on corporate growth. He added that results such as Nvidia's confirmed that the AI theme and capital spending boom remains strong. "Absent major policy surprises, the path of least resistance is to new highs supported by Tech / AI led strong fundamentals, a steady bid from systematic strategies on improving volatility and momentum signals, and flows from active investors on dips," Lakos-Bujas wrote in a note to clients. .SPX 1Y mountain S & P 500 performance over the past year. Lakos-Bujas sees double-digit S & P 500 earnings expectations for 2026 lifting stocks in the second half of this year. He also highlighted the U.S. Court of International Trade's recent ruling against the Trump administration's tariffs as a potential tailwind for equities. "Going into 2H25, investors should begin to anchor equities to 2026 EPS growth potential ... which is significantly higher and should help support the relative valuation case for U.S. equities," Lakos-Bujas wrote. To be sure, Lakos-Bujas' target implies just 1% upside from Thursday's close of 5,939.30. "Elevated valuation could limit market upside, but it is rarely a sell catalyst on its own, especially if the U.S. continues to deliver stronger growth relative to DM peers and the AI story remains intact," the strategist said. Lakos-Bujas had slashed his original year-end target from 6,500 to 5,200 as investors navigated the throes of the April tariff scare. The S & P 500 at one point traded around 20% below its record high set in February. However, pauses to the steep duties announced by President Donald Trump helped the market recover. The benchmark sits around 3% below its all-time high. Three other strategists featured in the CNBC Market Strategist Survey also raised their forecasts this week: RBC's Lori Calvasina : to 5,730 from 5,550 Deutsche Bank's Binky Chadha : to 6,550 from 6,150 Barclays' Venu Krishna : to 6,050 from 5,900
Business Upturn
8 hours ago
- Business Upturn
JPMorgan downgrades Tata Motors stock, flags multiple headwinds for FY26
By Markets Desk Published on June 6, 2025, 08:28 IST JPMorgan has downgraded Tata Motors to Neutral , with a target price of ₹740, citing emerging headwinds across its core businesses that could weigh on earnings in the near term. According to the brokerage, Tata Motors now faces a new set of challenges, including: Tariff risks and an ageing portfolio at Jaguar Land Rover (JLR), Muted industry growth and market share pressures in its domestic Commercial Vehicle (CV) and Passenger Vehicle (PV) segments. JPMorgan believes that FY26 will be a tough year for Tata Motors, projecting that the company could turn net debt again during the year as these challenges play out. Looking further ahead, the brokerage expects FY27 and FY28 to offer a window for balance sheet repair and operational improvement, supported by: A gradual pass-through of tariffs and the launch of new electric vehicles (EVs) at JLR, A cyclical recovery in India's CV market, Market-share stabilisation and margin improvement in India PVs. Investor focus will now turn to the company's upcoming Investor Days — scheduled for June 9 (India businesses) and June 16 (JLR) — where management's guidance and strategy across all business lines will be closely scrutinised. Disclaimer: The views and target prices mentioned in this article are as stated by JPMorgan. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions. Markets Desk at
Yahoo
10 hours ago
- Yahoo
JPMorgan Backs RIL Despite Margin Pressures
On Thursday, analysts at JPMorgan reaffirmed their Overweight rating on Reliance Global Group, Inc. (NASDAQ:RELI), while raising the price target to INR1,568 from INR1,530, representing an upside of over 8% from the current levels. In their analysis, the analysts cited that although refining and petrochemical margins have dropped, the downside risk is likely to remain modest throughout the year. An insurance agent talking to a customer in their home office about healthcare insurance options. Having said that, the one-third contribution of the oil-to-chemical (O2C) segment means that there will only be a marginal impact on the consolidated EBITDA. Additionally, the Retail and Telecom segments are anticipated growth catalysts for Reliance Global Group, Inc. (NASDAQ:RELI), driven by favorable base influences. With the Spetner's Associates acquisition completion, the management believes that the strategic traction will accelerate the company's market footprint and expand the agency network. This improvement through synergies and other unanticipated positive factors could translate to higher margins and cost savings. The optimism surrounding EBITDA from the Telecom and Retail sectors can also not be overlooked. Reliance Global Group, Inc. (NASDAQ:RELI) is an InsurTech company that emphasizes acquiring and managing wholesale and retail insurance agencies across the United States. Founded in 2013, the giant leverages technology to transition from the conventional insurance agency model. While we acknowledge the potential of RELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
