Analysts Upgrade Goodyear and Cooper Shares
Goodyear Tire & Rubber Co. and Cooper Tire & Rubber Co., both experienced gains in their share prices after analysts raised their ratings for the two firms’ stock. According to Bloomberg, Cooper climbed 17 per cent after CRT Capital Group Inc. rated the stock as “fair value,” up from “sell.” Goodyear gained 15 per cent after KeyBanc Capital upped its rating to “hold” from “underweight.”
“Goodyear is taking the necessary steps to react to the difficult environment,” KeyBanc analyst Saul Ludwig wrote in an investor’s note, adding: “Cost-reduction efforts remain positive, and we suspect there will be some recovery” the second half of 2009 as buyers replace tyres.
However, Standard & Poor’s cut Goodyear’s senior unsecured debt to B+ from BB-. The agency said the move “reflects our view that tyre demand will continue to decline as economic conditions deteriorate worldwide,” S&P analyst Lawrence Orlowski wrote.