McDonald Investments rates Cooper stock a 'buy'

CLEVELAND (Dec. 13)—Things are looking up for Cooper Tire & Rubber Co. from the perspective of Saul H. Ludwig of McDonald Investment Inc. The analyst reiterated Cooper's stock a "buy" recently, for several reasons, he said. "We feel that a settlement of the lawsuit sort of sets the stage for them to have better results in the tire side of their business next year," he said. Cooper's increased business with The Pep Boys—Manny, Moe & Jack and new automotive parts business due to come online during the second half of next year also were positive signs. "Whatever the auto industry does (next year), Cooper will probably do 3, 4, 5 percent better than that, by virtue of new business," Ludwig said. The analyst also expects Cooper to follow suit with price increases for greater profitability in its tire segment.