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.
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