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Research Alert: CFRA Maintains Hold Opinion On Shares Of The Goodyear Tire & Rubber Company

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $3 to $7, based on a 2027 P/E of 10.0x, a steep but justified discount to Goodyear's 10-year mean forward P/E of 13.5x. We lower our adjusted EPS estimates to $0.25 from $1.00 for '26 and to $0.70 from $1.40 for '27. Goodyear posted Q1 adjusted EPS of -$0.39 vs. -$0.04, ahead of the -$0.43 consensus. The beat was due to stronger-than-expected sales, as revenue fell 8.7% to $3.88B ($70M ahead of consensus) on an 11.6% drop in tire sales volume, partially offset by higher prices. The segment operating margin contracted 220 bps to 2.4%. Looking ahead, management said it expects increased pressure on tire industry demand and higher raw material costs stemming from Middle East conflict. Goodyear continues to face demand-related issues and the recent spike in crude oil prices should equate to meaningful pressures on profitability, as approximately two-thirds of Goodyear's raw materials costs are petroleum-based (and it doesn't hedge commodity prices). We remain at a Hold on the shares.

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