Robert W. Baird analyst Garrett Holland maintained a Buy rating on Ryder System (R – Research Report) on April 23 and set a price target of $140.00.
Garrett Holland has given his Buy rating due to a combination of factors including Ryder System’s adept navigation through the challenging freight recession and the company’s ability to exceed expectations in its core results for the first quarter. Holland acknowledges that while rental demand and used equipment pricing trends are likely to present near-term challenges, these factors are already factored into the company’s guidance, and Ryder’s outlook for 2024 remains positive. The company’s strategic adjustments have been validated by their returns, and the current valuation does not yet account for any significant recovery, suggesting an attractive risk/reward profile.
Moreover, Ryder System’s performance was buoyed by strong results in Supply Chain Solutions and ChoiceLease, despite weaker used vehicle sales and rental market conditions. The company has also demonstrated fiscal responsibility by raising the lower end of its 2024 earnings guidance, reducing planned rental capital expenditures, and improving its free cash flow outlook. These measures, coupled with a targeted operating revenue growth driven by recent acquisitions and a steady repurchase of shares, underpin Holland’s confidence in the stock and justify the Buy rating.
Holland covers the Industrials sector, focusing on stocks such as Norfolk Southern, United Parcel, and Forward Air. According to TipRanks, Holland has an average return of 1.1% and a 46.21% success rate on recommended stocks.
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Ryder System (R) Company Description:
Ryder System, Inc. engages in the provision of transportation and supply chain management solutions. It operates through the following segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), Dedicated Transportation Solutions (DTS), and Central Support Services (CSS). The FMS segment offers full service leasing and leasing with flexible maintenance options, commercial rental, and contract or transactional maintenance services of trucks, tractors, and trailers. The SCS segment focuses on the provision of integrated logistics solutions, including distribution, management, dedicated transportation, and professional services. The DTS segment includes turnkey transportation solutions. The company was founded by James A. Ryder in 1933 and is headquartered in Miami, FL.
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