Ritchie Bros. Receives a Sell from Canaccord Genuity

By George MacDonald

Canaccord Genuity analyst Yuri Lynk reiterated a Sell rating on Ritchie Bros. (NYSE: RBA) today and set a price target of $23. The company’s shares opened today at $24.94.

Lynk observed, “We reiterate our SELL rating and US$23.00 one-year target price on RBA after the company announced that 25-year company veteran Steve Simpson has resigned. This year has all the markings of a transitional year, as (relatively) new CEO, Ravi Saligram, drives enormous personnel change. Our concern is the potential negative impact these changes could have on Gross Auction Proceeds (GAP) growth in the medium term. Couple this with uncertainty surrounding used equipment pricing in the US (the Rouse Index indicates recent weakness), FX headwinds, and a premium valuation, and we remain cautious”

Ritchie Bros. has an analyst consensus of Hold, with a price target consensus of $26.50.

Ritchie Bros.`s market cap is currently $2.71B and has a P/E ratio of 28.3. The company has a book value ratio of 3.86%.

According to TipRanks.com, Lynk is ranked #2926 out of 3560 analysts.

Ritchie Bros Auctioneers Inc, together with its subsidiaries, operates as an industrial auctioneer. It sells industrial equipment assets such as construction, transportation, mining & selling equipment among others to on-site and online bidders.