Ahead Of The Bell: Analysts Bullish On Cooper Tire

NEW YORK (AP) — Analysts raised their earnings estimates on Cooper Tire & Rubber Co., saying the tire maker stands to benefit from proposed tariffs on Chinese tires.

Deutsche Bank analyst Rod Lache raised his price target to $20.50 from $16.80 in a note to investors. He also raised his earnings estimates for the Findlay, Ohio-based tire maker over the next three years.

Lache said recently announced tariffs on imported Chinese tires have the potential to boost Cooper's profitability as the company raises tire prices. He maintained his "Hold" rating.

The Obama administration last week approved higher tariffs on Chinese tires, arguing they are costing the jobs of thousands of U.S. workers. Beijing has countered that the higher tariffs are a violation of free-trade rules.

Separately, KeyBanc Capital Markets analyst Saul Ludwig raised his earnings estimates on Cooper through 2010. Ludwig said tire dealers have been offering "encouraging comments" about Cooper's products and services, while manufacturing costs are falling due to plant closure savings, a new labor contract and other measures.

He argued that price increases at Cooper are "not a sure thing" and the tariff issue "bears close watching." He maintained his "Buy" rating.

"Do not take this 'problem' to the bank just yet," he wrote of the tariff issue.

Shares of Cooper closed Friday at $17.97. The stock has rebounded from a low of $2.96 in March.