Ryder System Analyst Projects 35% Upside To Current Stock Price

Logistics company Ryder System Inc R has a strong history of dividend growth.

There is upside to the current consensus estimates due to the beginning of an upcycle, regulatory changes and secular outsourcing tailwinds, according to Morgan Stanley.

The Ryder System Analyst: Christyne McGarvey initiated coverage of Ryder System with an Overweight rating and price target of $165.

The Ryder System Thesis: The cycle inflection in the U.S. freight industry will likely be a powerful earnings driver in the near term, McGarvey said.

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The freight transportation industry has struggled for more than 18 months. A cycle inflection seems "more imminent than expected as a restock is likely necessary even without a major acceleration in spend," the analyst stated. "We also believe the longer the restock gets pushed to the right, the more robust the upcycle is likely to be," she added.

"In the medium-term, we believe Ryder’s results may be further boosted by the new emissions regulations set forth by EPA 2027," McGarvey wrote. The company's long-term growth may be turbocharged by "secular tailwinds that favor outsourced solutions vs. DIY models," she further said.

R Price Action: Shares of Ryder System had risen by 1.63% to $122.97 at the time of publication on Monday.

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