Goodyear Tire & Rubber could rise 25 percent from its current level to $40 in the next 12 months, according to an analysis by Barron’s magazine.

The tiremaker is well positioned to profit from a shift to larger 17-inch wheels used by pickup trucks, sport utility trucks and crossovers. In addition, many new cars come with the option of upgrading to larger wheel sizes. Bigger tires have a gross profit of $25 apiece, compared with $9 for smaller ones.

Goodyear trades at about $33.25 a share, near its 52-week high of $33.51. The last time it reached a record high was in 2007 at more than $36 a share.

The company makes 70 percent of its money from replacement tires, practically assuring a consistent revenue stream from repeat customers, Barron’s reports. Meanwhile, Goodyear is well positioned to buy back stock while rewarding shareholders with a growing dividend.

“It could spend nearly all of it on share repurchases and dividends,” Barron’s reports. “The dividend yield is only 1.3% now; expect payments to rise quickly in coming years.”

Of course, every stock has downside risks. Goodyear may have benefited from low oil prices for the past couple of years while light-vehicle sales in North America show signs of plateauing.

“While lower materials costs have helped results, companywide efficiency gains have been a bigger driver,” Barron’s says. “A possible peak in North American light-vehicle sales is also a concern, but Goodyear makes more on tire replacements than on new vehicles.”

Any new entrants in the market would have a hard time keeping up with Goodyear’s ability to keep today’s wide selection of tire types and sizes in stock at dealers.

“Getting tires is not like getting your iPhone upgraded,” Goodyear Chief Executive Richard Kramer told Barron’s last week. “But we’ve got a connected business model that makes the process easier for consumers.”