Citi upgrades Ryder System stock to Buy with $285 target

Citi analyst Ben Mohr upgraded Ryder System (NYSE: R) from Neutral to Buy, raising the price target to $285 from $283.

Mohr cited incremental strength in Used Vehicle Sales and Rental, as well as in the contractual Lease and Dedicated businesses. The analyst said the company is expected to raise its 2026 Used Vehicle Sales guidance again.

"R has been gradually benefiting from a positive catalyst driving each of the above from ongoing trucking capacity exits and we see a next-leg step-up in benefit from an additional positive catalyst driven by the Montgomery ruling," Mohr said.

The analyst noted that the Supply Chain Solutions segment is expected to face a relatively challenged quarter due to pushed-out startups and not yet lapping lost auto business, though it remains the growth engine in future years.

Mohr had previously downgraded Ryder to Neutral ahead of second-quarter earnings, citing a stretched valuation. The analyst stated that a pullback since July has made the stock's valuation more attractive. Ryder shares closed at $232.32 before the upgrade was issued.

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