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On Friday, Stephens analyst Justin Long adjusted the price target for Ryder Systems (NYSE:R) shares, reducing it to $150.00 from the previous $168.00, while maintaining an Equal Weight rating. The new target sits within the broader analyst range of $143.94 to $175, according to InvestingPro data, which also reveals the company’s current market capitalization of $5.75 billion. Long’s assessment came after Ryder’s first-quarter 2025 adjusted earnings per share (EPS) of $2.46 met Stephens’ estimates and slightly surpassed the consensus forecast of $2.41. Despite this, the company’s second-quarter guidance was approximately 5.5% lower than consensus estimates at the time. InvestingPro analysis shows Ryder trading at an attractive P/E ratio of 11.78x, with the company maintaining strong dividend payments for 50 consecutive years - one of several valuable insights available in the comprehensive Pro Research Report.
Long noted that Ryder’s rental business performed worse than previously anticipated, which is expected to affect utilization rates and pricing throughout the year. The analyst also mentioned that used vehicle pricing is nearing the break-even point for tractors, but management sees signs of improvement, especially in the sleeper class. However, a mix shift could pose a slight headwind in the second quarter.
For the second quarter of 2025, Ryder has guided an EPS range of $3.00 to $3.25, suggesting a need for an earnings increase in the second half of the year to achieve the full-year guidance of $12.85 to $13.60. While Long believes that Ryder’s annual targets are attainable with some macroeconomic improvement and the implementation of company-specific profitability initiatives, he also cautioned that achieving these goals could become more challenging if the broader economic environment weakens.
Long’s stance remains cautious due to the ongoing difficulties in the truckload market and persistent pressures in Ryder’s Fleet Management Solutions (FMS) segment. The new price target of $150 reflects these concerns and the analyst’s neutral outlook on the stock. According to InvestingPro’s Fair Value analysis, Ryder is currently trading near its Fair Value, with the company maintaining a GOOD overall financial health score of 2.71.
In other recent news, Ryder System Inc . reported its Q1 2025 earnings, showing a slight miss on both earnings per share (EPS) and revenue compared to market expectations. The company reported an EPS of $2.46, just below the forecast of $2.47, and revenue of $3.13 billion, which fell short of the anticipated $3.19 billion. Despite these misses, Ryder’s strategic shift towards asset-light operations continues to progress, with operating revenue increasing by 2% year-over-year to $2.6 billion. Analysts noted that Ryder’s strategic initiatives are expected to drive future earnings growth, with the company projecting full-year 2025 EPS between $12.85 and $13.60. The company’s focus on supply chain and dedicated services is anticipated to contribute significantly to its revenue mix in 2025. Ryder’s free cash flow saw a substantial increase to $259 million from $13 million the previous year, highlighting improved cash generation. Additionally, the company’s return on equity stands at 17%, reflecting resilience amidst challenging market conditions. Ryder’s ongoing efforts to optimize its business model are expected to yield significant benefits in the coming years.
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