Ryder System Inc.
) - one of the world's largest providers of integrated logistics
and transportation solutions - is set to launch its first used
vehicle center 'Ryder Vehicle Sales' center in Surrey, British
The new Vehicle Sales center will facilitate selling of used
commercial and heavy-duty vehicles, which includes - trucks,
trailers, tractors, straight trucks, panel and cube vans,
refrigerated trucks and stake trucks. These used vehicles will be
sold to customers along with a Ryder Road Ready(TM) certificate and
a 30-day warranty period. Moreover, the customers will get access
to complete maintenance history of that vehicle before its
Few days back, Ryder inked a deal with Multi Group Logistics,
Inc., an Illinois-based truckload service provider to offer onsite
maintenance for a fleet of 500 trucks and 675 trailers and a full
service lease for 205 tractors.
We believe Ryder's persistent wins of such contracts, coupled
with favorable lease rate environment, will deliver strong result
for the company going forward. Moreover, strategic acquisitions and
increased investments in vehicles provide long-term growth
potential for Ryder.
However, we remain concerned about the challenging economic
environment surrounding the company's operations despite its strong
performance. Further, heavy capital expenditures, a distressed cash
position, lower demand on tighter truckload market and stiff
competition from peers like
) could limit the long-term growth for the company. We, thus
maintain our long-term Neutral rating on Ryder.
Currently, Ryder has a Zacks #3 Rank, implying a short-term Hold
rating on the stock.
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