Ryder System's (R) Q2 results reinforced confidence in the transportation and logistics company's recovery with the stock "underappreciated" even near record highs, Morgan Stanley said Friday in a report.
The company on Thursday boosted its full-year profit outlook after non-GAAP earnings and revenue in Q2 topped estimates. Stronger lease demand, commercial rental utilization returning to its 75% target and improving used-vehicle prices from the previous quarter supported results, and management reaffirmed $70 million in expected 2026 benefits from strategic initiatives, Morgan Stanley said.
Some supply-chain projects have been delayed into 2027, and lower volumes from recently added customers may weigh on H2 growth, though Ryder's longer-term trajectory remains intact, Morgan Stanley said. The "primary debate" among investors may focus on the pace of the company's recovery rather than its direction, the report said.
Morgan Stanley raised its per-share earnings estimates to $14.79 for 2026, $18.40 for 2027 and $21.54 for 2028. It boosted its price target on Ryder stock to $320 from $280 and reiterated its overweight rating.
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