Goodyear Tire & Rubber stock can rally 60% as analysts remain bullish
- JPMorgan analyst Ryan Brinkman assigned an overweight rating to Goodyear Tire & Rubber stock.
- Brinkman reduced the year-end price target but reported potential gains of over 60% from previous trading levels.
- Analysts are divided on the stock, but many are optimistic about its future performance due to transformation efforts and tariff management.
In the United States, JPMorgan expressed a bullish outlook on Goodyear Tire & Rubber on May 22, 2025. Analyst Ryan Brinkman indicated that the company's ongoing transformation efforts and capability to navigate tariff challenges effectively make it a strong investment opportunity. Despite a slight reduction in the year-end price target from $18 to $17, Brinkman's analysis suggests that Goodyear's stock could see a potential gain of approximately 61.9% from its closing value prior to the announcement. The company has been ahead of schedule in its ambitious 'Goodyear Forward' two-year transformation plan, which is set to conclude in December 2025. The plan includes key financial strategies aimed at improving performance metrics, such as achieving cost reductions of $1.5 billion and doubling the operating income margin to 10%. These transformative measures also focus on significantly decreasing the overall debt burden of the company, positioning Goodyear advantageously in the tire manufacturing industry. Furthermore, Brinkman highlighted that Goodyear's manufacturing footprint in the U.S. allows it to better manage tariff-induced pressures compared to its competitors. The analyst noted that not only does this enhance Goodyear's stability but it could also lead to market share gains due to recent tariffs affecting foreign producers. This dual focus on operational efficiency and market positioning has contributed to a positive sentiment surrounding Goodyear's financial outlook.