Oppenheimer Has Some Thoughts On Ritchie Bros. Auctioneers (RBA)

Oppenheimer & Co. rates shares of Ritchie Bros. Auctioneers RBA at Perform. In the research note, Oppenheimer writes, "We reiterate our Perform rating on RBA shares, but remain drawn to its long-standing auction market leadership in the immense used industrial equipment sale industry. Gross auction proceeds (GAP) remain under pressure given low interest rates (i.e., low carrying costs for equipment owners), and the perception of future improvement in rates sapping urgency to sell presently. As a result, margins have been pressured, as an impressive history of y/y GAP growth has been disrupted during 2009/2010. With a lack of clarity relating to when GAP growth will resume, we anticipate RBA shares to remain rangebound in the near term." Shares of Ritchie Bros. lost 52 cents yesterday to close at $18.60, a loss of 2.7%.