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Longbow Downgrades Cooper Tire & Rubber On Volume, Pricing Risks

Longbow Research's U.S. channel checks over the past 30 days have given the sell-side firm reason to be cautious about Cooper Tire & Rubber Co CTB 0.33% meeting or beating earnings expectations in 2018, the firm said in a Tuesday note.

The Analyst

Longbow analyst Anthony Deem downgraded shares of Cooper Tire & Rubber from Buy to Neutral with no assigned price target.

The Thesis

Over the past 30 days, greater-than-expected price and volume pressure has been observed in the U.S. channel — a likely indicator of further margin suppression in 2018, Deem said.

Near-term margin risks include greater promotional activity, high inventory, weaker-than-expected production schedules and negative industry shipments, the analyst said. Source

Downside weakens. We can expect a soon breakout of the falling channel and some upside.