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.
