Market Overview

Should You Be A Buyer Of Ryder?

Should You Be A Buyer Of Ryder?
Related R
Dedicated, Lease Operations Power Ryder Earnings
Earnings Scheduled For July 25, 2018

Analysts at KeyBanc Capital Markets turned bullish on Ryder System, Inc. (NYSE: R) after conducting proprietary checks into rental activity. The firm's Todd Fowler upgrades Ryder's stock rating from Sector Weight to Overweight with a newly established $100 price target.

Proprietary checks found that the transportation provider's rental activity is benefiting from improved demand on a year-over-year basis, Fowler commented in the upgrade note. The findings are in-line with broader for-hire trends and weather-related disruptions. In fact, nearly two-thirds of those contacted by the analyst said that utilization in the third quarter so far is higher year-over-year and the overall outlook for the fall season is positive.

Lease commentary was also in-line with expectations as the majority of contacts suggest demand was flat to higher in the third quarter, the analyst added.

Given the favorable findings, Fowler is "incrementally confident" in the company's bottom half of 2017 guidance, which implies an earnings per share of $4.50 at the midpoint. Adjusting for 25–45 cents per share in earnings benefit from reduced valuation adjustments and accelerated depreciation, the analyst now expects the company to earn $5.35 per share which represents an increase from a prior estimate of $5.22 per share.

The analyst's 2018 estimate is also above the current consensus estimate of $5.22 per share in 2018 although the Street's figure still implies a "modest" operational growth of 5–10 percent prior to normalizing rental utilization.

Related Links:

25 Stocks Moving In Wednesday's Pre-Market Session

Knight, Ryder: Here's Buckingham's Picks Among Transportation Names


Image Credit: "Ryder truck and HTS Systems Cone Cradle" By MobiusDaXter (Own work) [CC BY-SA 4.0 (], via Wikimedia Commons

Latest Ratings for R

Oct 2018BuckinghamMaintainsBuyBuy
Oct 2018Loop CapitalInitiates Coverage OnHold
Sep 2018Deutsche BankInitiates Coverage OnBuy

View More Analyst Ratings for R
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Upgrades Price Target Travel Analyst Ratings Tech Trading Ideas Best of Benzinga


Related Articles (R)

View Comments and Join the Discussion!

Latest Ratings

VIABImperial CapitalUpgrades29.0
CDNSJP MorganUpgrades51.0
EBAYRBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Bitcoin Has A China Problem

Boeing's CEO Strikes Optimistic Tone At Analyst Conference