Wolfe Research upgrades Ryder Systems stock rating to Outperform

Published 01/07/2025, 12:06
Wolfe Research upgrades Ryder Systems stock rating to Outperform

Investing.com - Wolfe Research upgraded Ryder Systems (NYSE:R) stock rating from Peerperform to Outperform on Tuesday. The $6.57 billion market cap company has demonstrated strong performance, with shares delivering a 32.33% return over the past year.

The transportation and logistics company’s shares have remained relatively flat year-to-date with just a 1% gain, modestly lagging behind the S&P 500 while outperforming Wolfe’s broader Transport Index.

Wolfe Research highlighted Ryder’s unique position within its trucking coverage, noting the company shows modest earnings per share upside potential compared to consensus estimates.

The research firm also pointed to Ryder’s low price-to-earnings valuation as a factor in its upgraded outlook.

Ryder Systems provides transportation and supply chain management solutions, including fleet management, dedicated transportation, and supply chain solutions to companies across various industries. With annual revenue of $12.67 billion, the company has shown resilient performance. InvestingPro subscribers can access 8 additional key insights about Ryder, including detailed analysis of its financial health and growth prospects.

In other recent news, Ryder System Inc . reported its Q1 2025 earnings, with adjusted earnings per share (EPS) of $2.46, narrowly missing the forecast of $2.47. The company’s revenue for the quarter was $3.13 billion, falling short of the expected $3.19 billion. Despite these misses, Ryder has projected a full-year 2025 EPS range of $12.85 to $13.60. The company is focusing on its strategic shift towards asset-light operations, expecting 60% of its 2025 revenue to come from these areas. Stephens analyst Justin Long has adjusted Ryder’s stock price target to $150 from $168, maintaining an Equal Weight rating, after noting the company’s rental business underperformed expectations. Long highlighted potential challenges in achieving Ryder’s annual targets if macroeconomic conditions weaken. Ryder’s management remains optimistic, citing improvements in used vehicle pricing, particularly in the sleeper class, and ongoing strategic initiatives as key growth drivers. The company continues to navigate challenges such as a challenging freight market and pressures in its Fleet Management Solutions segment.

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