Deutsche Bank: Goodyear Tire & Rubber Company (GT.US) could emerge as a winner in Trump's tariffs war, upgraded to "buy" rating.

According to analysis from Deutsche Bank Aktiengesellschaft, Goodyear Tire & Rubber Company is expected to benefit from President Trump's car import tariff policy. The bank pointed out that Goodyear Tire & Rubber Company's demand in the US market mainly comes from domestic manufacturers, and its tire products are not currently on the list of tariffs, so its rating has been upgraded from "hold" to "buy." Analyst Edison Yu, who resumed research on Goodyear Tire & Rubber Company in December last year, said, "Although new car sales may be affected, the increase in sales of high-profit replacement tires will effectively offset the negative impact. Overall, although execution risks still exist, considering the current valuation is at historical lows, we believe the company has a strong operational foundation to outperform the market." On Monday, Goodyear Tire & Rubber Company's stock price rose by 5.12%, but it is still down over 30% from its peak a year ago. Competitors AutoZone, Inc. (AZO) and O'Reilly Auto Parts (ORLY) also saw their stock prices rise on the same day. This optimistic outlook is due to Goodyear Tire & Rubber Company's steady progress in cost reduction plans. Deutsche Bank Aktiengesellschaft pointed out that the company has completed the sale of its non-highway tire business, announced the transfer of Dunlop intellectual property assets, and reiterated its expectation to complete the divestiture of its chemical business by the end of this year. Yu maintains a target price of $13, which implies a 41% upside potential from Monday's closing price, ranking it among the highest expectations on Wall Street. The market generally has a 12-month target price of about $12, while the current stock price is $9.24. Currently, Wall Street has given the stock 5 "buy" ratings and 5 "hold" ratings, with no "sell" ratings. Yu concluded by saying, "After in-depth discussions with the company, we are more confident in its ability to achieve its goal of saving $1.5 billion in costs and improving profitability by the end of 2026, believing that it has gained the necessary momentum for development."