Goodyear Tire & Rubber Co. (GT - Get Report) will be a good safe haven investment if electric vehicles make legacy auto makers like Ford Motor Co. (F - Get Report) and General Motors Co. (GM - Get Report) obsolete, according to analysts at Morgan Stanley.
New vehicle sales experienced record years in 2015 and 2016, but optimism about the long-term health of the industry is waning.
"The stock is one of the cheapest stocks in the S&P 500, the US Autos & Shared Mobility coverage universe, and global tire stocks," Morgan Stanley analyst Adam Jonas wrote. "GT is relatively less exposed to the light vehicle credit cycle, used car prices, and [internal combustion engine] power train decline, the three key factors that drive our cautious view on many names in the sector."
Goodyear shares were up 3.51% to $31.38 in late morning trading Monday.
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