Analysts Raise Goodyear Share Target

Analysts have raised their share target for Goodyear following the company’s announcement that it will change its salaried benefits which will have the combined effect of reducing the company’s pension expenses by $80-$90 million in 2007 and $100-$110 MM in 2008.

“We are raising our 2008 earnings per share estimate for GT to $3.35 from $2.50, based primarily on: savings from the aforementioned OPEB/pension restructuring; downward adjustment to our assumptions for equity issuance to $750 million from $1 billion; and less expected deterioration in Goodyear’s Latin American and Eastern European margins,” Deutsche Bank analysts explained.

“We are also raising our 12-month target to $38 from $27, based on 5.5 times our revised 2008 EBITDAP estimate,” they continued.