Ravi Shanker, an analyst from Morgan Stanley, maintained the Buy rating on Ryder System. The associated price target remains the same with $190.00.
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Ravi Shanker has given his Buy rating due to a combination of factors that highlight Ryder System’s potential for future growth despite some recent challenges. The company’s fundamentals remain strong, with significant momentum at the segment level and ongoing transformation efforts. Although there was a weaker-than-expected gain on sale, the operating income excluding these gains exceeded expectations, driven by a notable performance in the Fleet Management Solutions segment.
Furthermore, the company’s strategic initiatives, such as the cyclical recovery in rental and used vehicle sales, along with opportunities in Dedicated Transportation Solutions and Supply Chain Solutions, are expected to contribute to improved earnings. Management has outlined a clear path to achieving $200 million in additional upcycle earnings, and the company’s focus on long-term value creation is supported by strong free cash flow guidance and continued share repurchases. These factors, combined with the current attractive valuation of the stock, underpin the Buy rating.