Goodyear: Tariff Advantage Adds A Lifeline (Rating Upgrade)
Summary
- Goodyear is a clear benefactor of Trump's tariffs. The company has significant U.S. manufacturing, whereas competitors rely much more on imports.
- The tariff could halt the Asia Pacific region's rising imports that have massively pressured Goodyear, as tariffs cut the region's previous cost advantage.
- The Goodyear Forward plan has shown progress through divestments and cost savings, but Goodyear's sales performance has remained weak for now.
- Tariffs make Goodyear a more viable investment. Goodyear's high debt and tariffs' uncertain impact and permanence still make the investment very volatile, though.
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