J.P. Morgan Continues To Rate GT Overweight

J.P. Morgan is continuing to rate Goodyear Tire & Rubber Co. GT Overweight. “Our December 2011 price target of $17 is based on ~4.5x 2012E EBITDA,” J.P. Morgan writes. “We use a lower multiple for GT relative to the multiple realized by many other automotive and tire companies primarily because of GT's weaker cash generation (high pension contributions and low capex) and higher breakeven point. “GT currently trades at 6.7x JPM 2012E EPS (vs. its historical range of 8-13x).” Goodyear closed Monday at $14.61.