In a report released today, Shaqeal Kirunda from Morgan Stanley maintained a Hold rating on GoodYear Tire (GT – Research Report), with a price target of $10.20.
Shaqeal Kirunda has given his Hold rating due to a combination of factors impacting Goodyear Tire’s financial performance. The company’s first-quarter results showed a decline in both revenue and operating income, with margins taking a hit due to challenges such as reduced volumes and increased raw material costs. Despite these headwinds, Goodyear’s efforts through its Goodyear Forward plan and favorable pricing strategies provided some offsetting benefits.
Furthermore, regional performance varied, with North America experiencing a decline in replacement volumes and Asia Pacific facing challenges due to the divestiture of the OTR tire business. The company’s guidance for the year remains largely unchanged, although expectations for working capital inflow have been reduced. These mixed results and cautious outlook contribute to the Hold rating, suggesting that while there are challenges, there is also potential for stabilization and improvement in the future.