) to sell from hold.
Analyst Rod Lache says shares have run up about 70% since mid-October. While he acknowledges Goodyear has done an impressive job of turning around its fortunes in North America, he contests the assertion that there's significant upside to margins from here.
He cuts his 80 cents 2005 earnings per share estimate to 75 cents and may be optimistic. He now expects breakeven in first-quarter 2005. He notes management is contemplating dilutive transaction to raise cash.
Lache says with no signficant free cash flow, there's not much room for error, particularly given signficant pension/debt maturing cash obligations.