Ryder Systems (R) Can Easily Ride Higher - FBR Capital
Tweet
Share
E-mail
Get Alerts R Hot Sheet
Price: $122.43 +0.20%
Rating Summary:
13 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
13 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Join SI Premium – FREE
Since bottoming in July 2012, Ryder Systems (NYSE: R) is up 87% versus a 24% mover in the S&P 500. Now investors want to know if shares can continue higher. According to analysts at FBR Capital they can... much higher.
FBR Capital analyst John R. Mims raised his price target on Ryder Monday from $75 to $82, reiterated an Outperform and Top Picks rating. The new prices target implies an additional 33% upside. The firm also said given its increased conviction that Ryder could see peak EPS well above $7.50 this cycle, the stock could trade north of $110 in the next three years.
Mims cited three key points to support their bullish view:
1) Margin improvement cycle has legs - "... we would expect FMS margins to move back to the 13.1% level in the next three to four years (up 380 bps from the 9.3% reported in 2012) at an absolute minimum, and we believe FMS margins in the 14% to 15% range are highly probable"
2) Sum-of-the-parts analysis yields $82 price target on 2013 earnings - "... Fleet Management Solutions and Supply Chain Solutions, are very unique businesses... we see that Ryder should trade at around 9x 2013 P/EBT versus 6.8x currently."
3) Growth outlook + multiple expansion drives potential for long-term upside - "Based on our growth and peak margin analysis, coupled with our sum-of-the-parts valuation analysis, we believe Ryder could easily post peak earnings well above $7.50 this cycle and could trade up to $110."
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 $62.52 yesterday.
FBR Capital analyst John R. Mims raised his price target on Ryder Monday from $75 to $82, reiterated an Outperform and Top Picks rating. The new prices target implies an additional 33% upside. The firm also said given its increased conviction that Ryder could see peak EPS well above $7.50 this cycle, the stock could trade north of $110 in the next three years.
Mims cited three key points to support their bullish view:
1) Margin improvement cycle has legs - "... we would expect FMS margins to move back to the 13.1% level in the next three to four years (up 380 bps from the 9.3% reported in 2012) at an absolute minimum, and we believe FMS margins in the 14% to 15% range are highly probable"
2) Sum-of-the-parts analysis yields $82 price target on 2013 earnings - "... Fleet Management Solutions and Supply Chain Solutions, are very unique businesses... we see that Ryder should trade at around 9x 2013 P/EBT versus 6.8x currently."
3) Growth outlook + multiple expansion drives potential for long-term upside - "Based on our growth and peak margin analysis, coupled with our sum-of-the-parts valuation analysis, we believe Ryder could easily post peak earnings well above $7.50 this cycle and could trade up to $110."
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 $62.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
- Alphabet, Microsoft earnings; PCE data ahead - what's moving markets
- Ryder Systems (R) PT Raised to $135 at Goldman Sachs
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT ChangeRelated Entities
Standard & Poor's, EarningsSign 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!
