Raising earnings forecasts on lower crude oil prices; downgrade Bridgestone to Neutral from Buy as shares approach our TP

Research evidence excerpt

Raising earnings forecasts on lower crude oil prices; downgrade Bridgestone to Neutral from Buy as shares approach our TP

Equity Research

18 June 2026 | 7:04AM JST

JAPAN AUTOMOBILES: TIRE & RUBBER

Raising earnings forecasts on lower crude oil prices; downgrade

Bridgestone to Neutral from Buy as shares approach our TP

Upward revisions factoring in lower crude oil prices Kota Yuzawa

+81(3)4587-9863 |

Our commodities team revised its WTI price outlook as of June 15, following updates kota.yuzawa@gs.com

Goldman Sachs Japan Co., Ltd.

on the situation in the Middle East (Link), lowering its assumptions from $85/bbl to

Ken Kawamoto$80 for 2026, from $75 to $70 for 2027, and from $70 to $66 for 2028. We believe +81(3)4587-1921 |

that the stabilization of crude oil prices could lead to a boost in profits for tire ken.kawamoto@gs.comGoldman Sachs Japan Co., Ltd.

manufacturers through lower synthetic rubber prices. On the other hand, the price of

natural rubber, another major raw material, is on an upward trend. While we expect

stabilization in the medium term due to production increases in Cote d’Ivoire, we are

now revising our TSR20 assumption from 200¢/kg to 220¢/kg to factor in spot

prices. The four covered companies have factored Middle East risks into their

FY12/26 guidance and remain focused on achieving their initial plans through price

increases, the benefits of a weaker yen, and cost reductions. In response to the

downward revision of crude oil prices and the upward revision of natural rubber

prices, we have revised up our FY12/26-FY12/28 operating profit forecasts by an

average of 5%/2%/4%. Also, we downgrade Bridgestone to Neutral from Buy, as we

see limited upside potential following recent share performance. We continue to