An image of a pen, a tablet and a calculator
Markets

Ryder System Upgraded to “Buy” at Jefferies (R)

Trucking company Ryder System, Inc. ( R ) on Tuesday caught a big upgrade from analysts at Jefferies & Co.

The firm said it upgraded R from "Hold" to "Buy" and boosted its price target from $51 to $58. That new target suggests a 23% upside to the stock's Monday closing price of $47.20.

A Jefferies analyst commented, "Ryder's earnings are still 50% below past-peak, the deepest decline across our coverage. Intermediate term, we estimate that Ryder's forward-peak EPS power could be roughly $5.50 if it hits its targeted 8.0% return on capital (vs 4.8% in 2010 and 7.9% past-peak), and increases its debt-to-equity to 215%. This $5.50 of estimated forward-peak earnings power is 140% higher than $2.26 of EPS in 2010, and 20% higher than past peak of $4.54."

Ryder shares were mostly flat in premarket trading Tuesday.

The Bottom Line

Shares of Ryder ( R ) have a 2.29% dividend yield, based on last night's closing stock price of $47.20. The stock has technical support in the $42-$44 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels.

Ryder System, Inc. ( R ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

R

Other Topics

Stocks

Latest Markets Videos