We upgrade our recommendation on Ryder System (R) to Outperform from Neutral. The company's growth trajectory is backed by improvements in lease fleet and used vehicle sales. Further, it is experiencing an improvement in fleet age, implying more renewals and organic fleet growth.
In addition, the company's efforts in deploying a fuel-efficient fleet continue to lead the industry, strengthening its foothold in the rapidly growing market for environment-friendly vehicles. Apart from its organic growth, Ryder also seeks entry into new markets via acquisitions and remains successful in doing so.
Further, Ryder remains committed to its shareholders via dividends and share repurchase. Thus, we remain optimistic on the company's growth prospects.
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