Cooper Tire & Rubber Co. (CTB) is well positioned to enjoy improved operating costs, greater geographic flexibility and the ability to penetrate international markets through its investments and facilities in low-cost countries.
The company continues to realize the benefits of reducing costs in its manufacturing operations. It has also been able to absorb the costs associated with the need to curtail production to align with demand.
In the second quarter, Cooper Tire returned to profitability after a year. Earnings increased tenfold compared to the Zacks Consensus Estimate of $0.04. As such, we have upgraded the stock to an Outperform recommendation with a six-month target price of $20 per share.Zacks Investment Research
