According to Bloomberg, Goodyear Tire & Rubber Co. may benefit from U.S. tariffs on car imports, as the company sources much of its demand from domestic automakers and tires currently fall outside the scope of the planned duties. Deutsche Bank has upgraded Goodyear’s stock rating from “hold” to “buy,” citing improved cost management and favorable positioning.

Analyst Edison Yu highlighted that while new vehicle sales could be affected by tariffs, demand for replacement tires—which offer better margins—is expected to offset potential losses. He also pointed to Goodyear’s recent strategic moves, including the divestiture of its off-the-road tire business and the expected sale of its chemicals division, as signs of positive momentum.

With shares trading at $9.24, Yu’s price target of $13 suggests a potential 41% upside. Goodyear stock has five “buy” and five “hold” ratings, and no “sell” ratings, reflecting growing confidence in the company's ability to achieve its $1.5 billion cost-saving target by 2026.

Read the full article at bloomberg.com for more details.