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Demand for 17-inch and larger models of tires has more than
doubled since 2010 and management expects it to double again by
2020, much faster growth than the rest of the market, Barron's
said in its latest issue.
Goodyear shares could hit $40 in a year for a gain of 25
percent, Barron's said. On Friday, Goodyear shares closed at
$32.18 on the Nasdaq and the stock has fallen about 1.5 percent
so far this year.
Late in October, Akron, Ohio-based Goodyear cut its full-year
forecast for sales and operating income, hit by a fall in U.S.
heavy-duty truck production.
Key concerns about the stock, however, seem overstated and more
than priced in, Barron's said.
The company's dividend yield is only 1.3 percent currently and
payments are expected to rise quickly in coming years, according
to the report.
(Reporting by Devika Krishna Kumar in New York; Editing by
Bernard Orr)
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