Jefferies on Ryder Systems (R); Firing Warning Shot: Commercial Rental and Used Vehicle Sales the Culprits

Jefferies maintains a 'Buy' on Ryder Systems (NYSE: R) price target of $61.00 (from $72.00).

Analyst, Peter Nesvold, said, "R guided 2Q EPS $0.18 (or 15%) and 2012 EPS by $0.34 (or 8%) below consensus. Healthcare represented $0.05 of the $0.18 guide-down, with weaker rental volumes driving the rest. This weaker rental demand led the company to downsize the fleet by dropping more trucks into the wholesale vs. retail sales channels (which, by definition, are lower margin). We think management has consciously cleared the decks with the updated guidance."

Nevsvold lowers FY12 EPS estimate from $4.11 to $3.76 and FY13 from $4.84 to $4.35.

For an analyst ratings summary and ratings history on Ryder Systems click here. For more ratings news on Ryder Systems click here.

Shares of Ryder Systems closed at $40.75 yesterday.

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