Breaking Stock Market News
- CFRA keeps a Hold rating on Cooper Tire & Rubber (CTB -2.9%) after taking in the company’s Q1 report and checking on valuation after the rebound from the March low.
- “We lower our 12-month price target to $20 from $30, based on 12.5x our ’21 EPS estimate, in-line with CTB’s 5-year average forward P/E multiple. We lower our EPS estimates to $0.40 from $2.50 for ’20 and to $1.60 from $2.85 for ’21,” updates analyst Garrett Nelson.
- Nelson notes lower oil prices and raw materials costs should help provide margin support for Cooper in the face of plummeting tire sales.
- Previously: Cooper Tire & Rubber EPS misses by $0.10, misses on revenue (May 7)
- Crude oil rallies again (CL1:COM) and is on track for its best week in history, supported by bullish factors including U.S. companies cutting production, Saudi Arabia raising its official oil selling price and gasoline demand improving as economies around the world reopen.
- June WTI +8.8% to $26.10/bbl, pushing this week’s gains to nearly 35% and on pace for its best week going back to the contract’s inception in 1983; July Brent +5.7% to $31.41/bbl.