STAMFORD, Conn. (Feb. 17, 2009)—CRT Capital Holdings L.L.C. has downgraded its earnings and cash flow estimates for Goodyear and reduced its recommendation on the firm's shares to “hold” from “buy.”
The investment bank said it is reducing Goodyear's price target to $8 per share to reflect lower industry volumes and high raw material costs. CRT revised its estimate for Goodyear's 2009 year-end EBITDA to $1.16 billion from $1.37 billion.
The company said it continues to view Goodyear's long-term prospects favorably, but not for the next six months.