Update: Jefferies Ratchets Up Price Target On Ritchie Bros. Following Earnings (RBA)

Jefferies & Co. is raising its price target on shares of Ritchie Bros. RBA to $30 from $17, but it is keeping its Hold rating on shares following earnings. In a note to clients, Jefferies writes, "Adjusted EPS of $0.13 matched our forecast and was $0.01 per share above consensus. Gross auction proceeds of $851.3 million were a record, with auction revenues of $88.5 million up from the $83.5 million for 1Q10 and also a quarterly record. A tight supply of late model used equipment allowed for strong prices across most categories of equipment. We believe that a healthier pricing environment has also encouraged owners to bring more under utilized or idle equipment to market. In addition, those that have aged fleets during the downturn are now beginning to spend capital on replacement, further contributing to a rebound in the volume of equipment flowing through the yards, with the number of consignments up in the quarter compared to a year ago." Shares of RBA closed at $28.48 yesterday.