Update shared on 27 Nov 2025
Fair value Decreased 1.30%Goodyear Tire & Rubber's analyst price target has been revised lower by analysts, with updated fair value estimates decreasing from $9.59 to $9.46. Analysts cite persistent margin pressures and modest industry headwinds, which are offset by signs of improvement in recent results.
Analyst Commentary
Recent analyst reports on Goodyear Tire & Rubber reflect a balanced view of the company's prospects, highlighting both opportunities and ongoing challenges as the company navigates a shifting industry landscape.
Bullish Takeaways- Bullish analysts note that Goodyear delivered strong third-quarter results, pointing to early momentum in operational execution and signs of recovery in its core business.
- Upward revisions in estimates for the broader auto suppliers sector, driven by healthy global light vehicle production and favorable trends in currencies and commodities, indirectly support Goodyear's outlook.
- Goodyear is pursuing an ambitious plan to expand margins and reduce debt. This is seen as a positive step toward long-term financial stability.
- Bearish analysts cite increased pressure from low-cost imports and more aggressive pricing dynamics in the tire industry, which could constrain profit margins.
- Mixed perspectives exist regarding Goodyear's ability to fully execute on its margin-expansion and debt-reduction initiatives, with some uncertainty about how quickly benefits will materialize.
- Despite recent improvements, price targets have been revised downward due to modest industry headwinds and competitive challenges. This reflects a more cautious approach to valuation.
What's in the News
- Announced Goodwill and Intangible Asset Impairment of $674 million for the quarter ended September 30, 2025, a significant increase from $125 million a year earlier (Key Developments).
- Launched the Goodyear Eagle F1 All Season, an ultra-high-performance tire engineered for handling, grip and comfort in diverse weather conditions, expanding the company's presence in the performance segment (Key Developments).
- Introduced three new all-terrain tires: Wrangler Outbound AT, Wrangler Workhorse AT 2, and Wrangler ElectricDrive AT. These products target SUVs, trucks and electric vehicles, and feature enhanced tread life and improved wet and snow performance (Key Developments).
- Formed a new Global Racing organization to unify all motorsport operations under one structure, led by Xavier Fraipont as vice president, and strengthen Goodyear's focus on racing innovation and brand strategy (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Decreased slightly from $9.59 to $9.46, reflecting a more cautious valuation outlook.
- Discount Rate: Remained unchanged at 12.5%, indicating stable perceived risk in future cash flows.
- Revenue Growth: Projected rate has fallen from -11.49% to -12.22%, signaling a slightly greater contraction in expected sales.
- Net Profit Margin: Lowered from 2.29% to 2.20%, suggesting pressure on profitability expectations.
- Future P/E: Increased modestly from 9.46x to 9.70x, implying investors expect slightly higher earnings multiples relative to forecasted profits.
Disclaimer
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