UPDATE: Jefferies Upgrading Ryder System To Buy (R)

Jefferies & Co. is upgrading shares of Ryder System R to Buy, and is raising its price target to $58 from $51.

In a note to investors, Jefferies writes, "We upgrade R to Buy with a year-end 2011 price target of $58/share (23% upside). The stock has underperformed YTD as investors have migrated toward names with short-cycle pricing power. We expect sentiment to shift into continued fuel spikes (against which Ryder is well insulated) and as the market begins to appreciate Ryder's material peak-to-peak earnings power."

Shares of R lost 65 cents yesterday to close at $47.20, a loss of 1.4%.