Morgan Keegan Outperform On Ryder System (R)

Morgan Keegan has an Outperform rating and a $60 price target on shares of Ryder System, Inc. R. In a note to clients, Morgan Keegan writes, "Ryder System, Inc. reported $0.65 per share in earnings excluding $0.15 in one-time net positive items. Results beat both our estimate of $0.60 and Street consensus of $0.63 as well as guidance for $0.58 to $0.63. In the fourth quarter, we saw particularly strong pricing on used vehicle sales and in the commercial rental business. Management guided for 2011 EPS of $2.80 to $2.90, with Q1:11 between $0.40 to $0.44. We raised Q1:11 to $0.44, Q2:11 to $0.75, Q3:11 to $0.90 and Q4:11 to $0.78, bringing FY11 to $2.87 from $2.65. We also raised FY12 to $3.55 from $3.35. We continue to like the stock at current valuation levels and maintain our Outperform rating as well as our $60 price target." Shares of R gained $2.00 yesterday to close at $50.74, a gain of 4.1%.