Aug. 20 at 4:26 PM
HSBC downgraded Goodyear Tire & Rubber to Hold from Buy, cutting its price target to
$9.50 from
$15.50 after a weak Q2 with volumes down 5.5% and operating income off 53% YoY. Cost savings from restructuring were offset by higher raw materials and lower volumes, leaving limited net benefit.
HSBC said a near-term re-rating is unlikely, lowering 2025–27 earnings forecasts as tariffs and cost pressures cap margins. It sees operating margin reaching only 7.6% in 2026, just above 2024 levels. Despite trading at a steep discount to peers, GT is unlikely to close the gap without sustained profit and FCF growth.
$GT $HSBC