UPDATE: Stifel Nicolaus Raises PT to $64 on Ryder System on Leasing Momentum

Stifel Nicolaus reiterated its Buy rating on Ryder System

and raised its price target from $63 to $64. Stifel Nicolaus commented, "Trucks are getting older, and at some point, they need to be replaced. For an increasing number of Ryder's customers, their trucks are getting to that point, and as the average age of Ryder's full-service lease fleet declines, we believe that margins should expand in the company's core Fleet Management Solutions (FMS) segment, leading to improving earnings over the next couple of years. Even without a robust economy, leasing growth should continue, in our view. In addition, the stronger acceptance of new engine technology (because newer engines get better fuel mileage) and increased maintenance complexity are leading new customers to Ryder." Ryder System closed at $45.82 on Tuesday.