New York, August 29 (FinanceEnquiry.com) – Analysts at Deutsche Bank Securities reiterate their BUY rating on the shares of The Goodyear Tire & Rubber Company (NASDAQ: GT). The 12-month target price is set to $21.
In a research note published on August 28, the analysts mention that in order to talk about the impact of its latest United Steelworkers labor contract, a conference call was hosted by the company. In addition to this, remarks of The Goodyear Tire & Rubber Company matched with anticipations from an elevated level. Furthermore, the P&L impact from alterations to wages, holidays, profit sharing, healthcare, and additional advantages ought to be insignificant.
Besides, the positives in opposition to the anticipations were associated with the aspects behind programs of The Goodyear Tire & Rubber Company to orate its hourly pension. In order to freeze its definite benefit pension and replace it with a definite contribution program, a deal was struck by GT as observed earlier.
This transaction is dependent upon The Goodyear Tire & Rubber Company completely funding its pension plan that would need a contribution of $1.1 billion if it were completed on August 28, and keeping complete funding that the company aims to attain by moving its assets to fixed income, the analysts add further.
