In a report published Tuesday, Canaccord Genuity analyst Yuri Lynk downgraded the rating on Ritchie Bros. Auctioneers RBA from Buy to Hold, and lowered the price target from $25.00 to $20.00.
In the report, Canaccord Genuity noted, “There are worrisome trends developing in RBA's business that cause us to change our previously bullish take on the stock. Gross Auction Proceeds (GAP) missed our Q2/13 estimate by 16% despite a 13% y/y increase in the sales force and a full quarter of EquipmentOne. As a result, we believe 2013 guidance for GAP may be at risk. We are reducing our valuation multiple to 20x 2014E EPS from 25x, and our one-year target to US$20.00 from US$25.00. Given the 4% total return implied by our target price, we are lowering our rating to HOLD from Buy.”
Ritchie Bros. Auctioneers closed on Monday at $19.59.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in