Among the top performing stocks today: Goodyear Tire.
Dow Jones reports that Morgan Stanley did a big flip on the tire maker, raising its rating to overweight from underweight, skipping the mealy-mouthed equalweight in between. It raised Goodyears price target to $20 from $13. Goodyear is up 6.8% to 15.
Morgan Stanley says that higher rubber prices could help tire companies beyond 2011. No one is currently modeling in a potential surge in tire volumes, driven either by emerging markets or pent up demand leading to potential volume and earnings upside, the investment bank said.
Cost savings from a plant closure in Tennessee also a plus for the stock, if not for the workers.
Other tires less happy. Bridgestone down 1.3%, Continental down 3%.view original article