JP Morgan increases Goodyear 2012 EPS, drops 2011 figure

Analysts at JP Morgan have increased their estimates for Goodyear Tire & Rubber's 2012 earning per share (EPS) and reduced 2011’s figure – mainly due to the impact of raw material prices. To reflect the impact of higher natural rubber prices, JP Morgan lowered its 2011 earnings per share projection to $0.50. However, 2012 has been revised up to $2.25. The estimates assume global volume growth of 4 per cent in 2011 and 2012 and a $374 million negative price/mix against raw material costs spread out in 2011.

According to a recent note, JP Morgan said the good news is that industry pricing remains solid, and end-markets, particular the high-margin commercial truck segment, are finally seeing a powerful recovery.

JP Morgan currently holds a $17 price target and an overweight rating on Goodyear shares.

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