UPDATE: Wunderlich Securities Initiates Ryder System with Buy on Compelling Valuation

In a report published Tuesday, Wunderlich Securities analyst Nicholas J. Bender initiated coverage on Ryder System R with a Buy rating and $72.00 price target. In the report, Wunderlich Securities noted, “WThe company is the largest player in the 900k unit domestic lease and rental market, operates a market-leading dedicated truckload fleet, and is a major supply chain logistics provider in North America and Asia. In addition, the company manages a network of over 800 facilities that supports rental and maintenance operations. Considering the scope and complexity of Ryder's service offerings, we view it as the premier play on private fleet conversion, a 4.2 million vehicle addressable market. Further, new business wins and leverage on the existing network will boost margin in FY13 and beyond. With valuation compelling, we look for shares to appreciate as these trends play out.” Ryder System closed on Monday at $60.54.