Jefferies Reiterates a Hold Rating on Ritchie Bros.

By Carrie Williams

In a report released yesterday, Stephen Volkmann from Jefferies reiterated a Hold rating on Ritchie Bros. (NYSE: RBA), with a price target of $32. The company’s shares closed yesterday at $35.56, close to its 52-week high of $37.23.

Volkmann said:

“RBA reported 3Q EPS of $0.20, above our $0.14 estimate, but below Consensus of $0.21. The reported ARR in the quarter of 12.9% (60 bps higher than we had modeled) was a solid result and was driven by growing fee-based revenue streams.”

According to TipRanks.com, Volkmann is a top 100 analyst with an average return of 13.2% and a 68.3% success rate. Volkmann covers the Industrial Goods sector, focusing on stocks such as United Technologies Corp., Illinois Tool Works, and Titan International.

Currently, the analyst consensus on Ritchie Bros. is Moderate Buy and the average price target is $35.75, representing a 0.5% upside.

In a report released yesterday, Oppenheimer also assigned a Hold rating to the stock.

Based on Ritchie Bros.’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $159 million and quarterly net profit of $39.71 million. In comparison, last year the company earned revenue of $109 million and had a net profit of $20.32 million.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock.

Ritchie Bros. Auctioneers, Inc. is an industrial auctioneer, selling equipment to on-site and online bidders. It offers convenient services to make buying and selling equipment easier, including financing, shipping, refurbishing, powertrain service warranties and insurance. The company also offers services that enable the world’s builders to easily exchange equipment. It sells a broad range of used and unused equipment for the construction, transportation, agricultural, material handling, mining, forestry, petroleum, marine and other industries. Ritchie Bros. Auctioneers was founded by David Edward Ritchie in 1958 and is headquartered in Burnaby, Canada.