Piper Jaffray Initiates Coverage on Ryder System (R) with a Neutral; Tremendous Operating Leverage Opportunity
More News related to R
- Ryder Chairman and CEO to Address BB&T Capital Markets 25th Annual Transportation Services Conference
- Ryder to Present at the Stifel Nicolaus Transportation Conference
- Ryder and Its Employees Exceed $1 Million Commitment to the American Red Cross With an Additional $100,000 Donation to Relief Efforts in Haiti
- Romarco named as part of 2010 TSX Venture 50
- Wellington West to Host New York Gold Conference - "A Focus on Growth"
More News related to New Coverage
- Janney Montgomery Scott Initiates Coverage on Papa John's International (PZZA) with a Neutral
- Feltl & Co. Initiates Coverage on ActivIdentity (ACTI) with a Buy
- Oscar Gruss Initiates Coverage Airgas (ARG) with a Buy
- Sidoti & Co Initiates Coverage on Solutia (SOA) with a Buy
- RBC Capital Initiates Coverage on Questar (STR) with a Sector Perform
Piper Jaffray & Co. initiates coverage on Ryder System (NYSE: R) with a Neutral. Price target $48.
Piper analyst says, "R, a core leveraged transportation equipment lease/rental company with smaller Dedicated Contract Carriage and Logistics operations, has a high degree of fixed costs due to the asset intensive nature of its business. R has a material amount of operating leverage and the potential to exhibit substantial operating margin expansion into an improving economy...Limited economic visibility likely proves for incremental lease/rental equipment demand. We believe the current Freight economy, albeit stabilized, is providing very limited visibility into real demand improvement. This scenario, combined with many small and mid sized transport companies currently constrained from a capital perspective, likely makes R's rental and short term lease products more attractive...So what gets us more excited about R's stock in the near term? Commercial Rental (CR) historically is a leading indicator of potential improvement in R's core Leasing product. Despite a stabilizing Freight economy CR revenue and profits have yet to exhibit directional meaningful improvement given continued weak market pricing and utilization. We would become more constructive on our R rating given indications of real improvement at CR."
To see more analyst ratings on CHRW Click Here.
Ryder System, Inc. provides transportation and supply chain management solutions.
Related Categories
New CoverageStocks Mentioned
+0.73Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
