Stock Jumps 12%: Tariff Beneficiary Revealed
- Shares of Goodyear Tire & Rubber (NASDAQ: GT) experienced a significant surge, climbing 12% on Monday, adding to its 32% year-to-date gain.The boost follows a bullish analysis from...
- Analyst James Picariello from BNP Paribas upgraded Goodyear stock to "outperform" from "neutral," also raising the price target to $15 per share from $11.
- Picariello estimates that only 12% of Goodyear's tire sales are subject to the 25% tariffs on auto parts, as the company manufactures the majority of its tires domestically.
Goodyear’s stock soars 12% following BNP Paribas‘s analysis, revealing the company as a prime beneficiary of current tariffs. The analyst upgrade, from “neutral” to “outperform,” forecasts a 25% increase, setting a new price target of $15 per share. discover how Goodyear’s strategic domestic manufacturing insulates it from hefty tariffs, delivering a important cost advantage over competitors. Further, internal cost-cutting measures adn strategic divestitures bolster financial performance, aiming for a 10% segment operating margin. This strategic positioning, combined with a low P/E ratio, suggests the stock is undervalued. News Directory 3 can keep you informed. Uncover what’s next for Goodyear as it navigates the market.
Goodyear Stock Rides High on Tariff Advantage adn Cost Savings
Updated June 11, 2025
Shares of Goodyear Tire & Rubber (NASDAQ: GT) experienced a significant surge, climbing 12% on Monday, adding to its 32% year-to-date gain.The boost follows a bullish analysis from BNP Paribas Exane.
Analyst James Picariello from BNP Paribas upgraded Goodyear stock to “outperform” from “neutral,” also raising the price target to $15 per share from $11. This new target suggests a potential 25% increase from its current trading price of around $11.90.The upgrade highlights goodyears cost advantages, especially its lower exposure to tariffs compared to competitors, making it a potential tariff winner.
Picariello estimates that only 12% of Goodyear’s tire sales are subject to the 25% tariffs on auto parts, as the company manufactures the majority of its tires domestically. This gives Goodyear an estimated 10 percentage-point cost advantage.
Beyond tariffs, Goodyear’s internal efforts to cut costs are also fueling optimism. A $1.5 billion cost-saving initiative, coupled with the divestiture of underperforming assets like the dunlop brand and its chemical business, are expected to improve the company’s financial performance. These moves are part of the Goodyear Forward initiative, which aims to increase segment operating margin to 10% by the end of the fiscal year, up from the current 6.2%.
“We see significant support for GT to deliver meaningful price/mix-led earnings upside, which the market is underappreciating,” BNP Paribas analysts wrote.
The median price target for Goodyear stock among analysts now aligns with BNP Paribas’ raised target of $15 per share. with a price-to-earnings ratio of 13 and a forward P/E of just 7, the stock appears undervalued relative to its projected earnings over the next year.
What’s next
Analysts anticipate continued growth for Goodyear, driven by its tariff advantages and accomplished cost-saving measures. Investors will be watching upcoming earnings reports to see if the Goodyear Forward initiative delivers the expected margin improvements.