Goodyear to Switch to Renewable Energy for European & Turkish Plants

Tire manufacturing major The Goodyear Tire & Rubber Company (GT) has announced that it will adopt renewable energy at its Goodyear plants across Europe and Turkey. The move is the first of a multiple-phase plan to procure 100% renewable energy at all its facilities across Europe, Middle East and Africa by the end of 2022.

Following the news, shares of the company gained 2.7% on Wednesday. Moreover, it added to its gains slightly to close at $16.79 in extended trade.

With the commencement of this plan, Goodyear will purchase around 700,000 megawatt-hours of renewable electricity. A reduction of the company’s carbon footprint by up to 260,000 tons is anticipated by this shift.

The President of Goodyear EMEA, Chris Delaney, said, “Switching to 100% renewable electricity at these production facilities fits perfectly with our commitment to reduce our carbon​ footprint. Furthermore, this decision shows that we are taking serious steps to continuously reduce Goodyear’s environmental impacts which is vitally important to ensure a better future for us all.”​ (See Goodyear stock chart on TipRanks)

Last month, Citigroup analyst Itay Michaeli reiterated a Hold rating on the stock. The analyst, however, raised the price target to $20 from $19, which implies upside potential of 20.2% from current levels.

Consensus among analysts is a Hold based on 4 Holds and 1 Sell. The average Goodyear price target of $17.80 implies upside potential of 7% from current levels.

Goodyear scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 117.8% over the past year.

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