Rubber & Plastics News
Akron, Ohio-The price of a share of Goodyear stock closed 21 Jan above $10 for the first time in more than a year following an analyst's upgrade pending the anticipated launch of a new tyre line in February.
Goodyear's stock hit $10.74, up from $9.51 Jan. 20, after Saul Ludwig of McDonald Investments Inc. in Cleveland upgraded his evaluation of Goodyear to â€œholdâ€ from â€œunderweight.â€ In his report, Ludwig said he made the adjustment because of recent positive indicators that have pushed the scales back to neutral.
Among those, the analyst cited improved dealer relations, improved market share of branded tyres, a surging truck tyre business, the possibility Goodyear will refinance its debt and the pending launch of a new high-end, all-season tyre dubbed â€œAssurance.â€
â€œIn our opinion, this is (Goodyear's) most important product launch in the last 10 years,â€ he wrote. â€œWe believe the Aquatred line will be phased out, and the Assurance will be its new, high-end tire for the consumer market.â€
Goodyear declined to comment on the tyre in advance of its launch, saying only it always is working on new products. In a recent trade magazine advertisement, Goodyear touted the all-weather, all-road capabilities of the product. â€œIn fact, on 6 Feb, 2004, it will be a new day for drivers everywhere,â€ the ad said. â€œYou have our assurance.â€