These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, BMO Capital Markets updated its view on Ritchie Bros (NYSE:RBA), raising the company’s price target from $116.00 to $120.00, while reaffirming an Outperform rating on the stock. The company, currently valued at $19.3 billion, is trading near its 52-week high with a P/E ratio of 56.5x. According to InvestingPro analysis, the stock appears to be trading above its Fair Value. This adjustment comes in the wake of Ritchie Bros announcing a robust performance for the fourth quarter of the fiscal year 2024, surpassing expectations with its EBITDA of $1.23 billion. The company reported considerable growth in Gross Transaction (JO:TCPJ) Value (GTV) and achieved impressive revenue growth of 16.4% year-over-year, especially noting a surge in the automotive sector. InvestingPro’s Financial Health Score rates the company as "GREAT" with a score of 3.09 out of 5.
Ritchie Bros’ financial outlook for 2025 includes an anticipated GTV increase ranging from 0% to 3% and an EBITDA projection between $1,320 million and $1,380 million. Despite expectations of a softer year-over-year performance for the first quarter, analysts at BMO Capital predict a ramp-up in the company’s financial results as the year 2025 unfolds. The company has maintained dividend payments for 23 consecutive years, demonstrating consistent shareholder returns. For more detailed analysis and 13 additional ProTips, visit InvestingPro.
The revised price target of $120 reflects a valuation of approximately 18 times the estimated 2026 Enterprise Value to EBITDA (EV/EBITDA) multiple, while the current EV/EBITDA stands at 19.1x. BMO Capital’s analysts have expressed confidence in the company’s potential for growth in the second half of 2025, despite anticipating a slower start to the year due to one-time benefits that boosted the first quarter of 2024. Technical indicators from InvestingPro suggest the stock is currently in overbought territory.
The endorsement from BMO Capital comes after Ritchie Bros delivered a substantial fourth-quarter beat for 2024, with earnings before interest, taxes, depreciation, and amortization significantly outperforming the guidance provided by the company. The positive revision of the price target suggests a favorable outlook for Ritchie Bros shares as the company continues to navigate through the fiscal year.
In other recent news, RB Global reported fourth-quarter earnings that exceeded analyst expectations, driven by robust revenue growth across its business segments. The company posted adjusted earnings per share of $0.95, surpassing the consensus estimate of $0.79. Revenue for the quarter increased 10% year-over-year to $1.14 billion, outperforming analyst projections of $1.06 billion. Total (EPA:TTEF) gross transaction value rose 2% to $4.1 billion, with notable growth in the automotive sector. Service revenue saw an 8% increase, reaching $875.5 million, due to a higher average service revenue take rate and increased gross transaction value. Inventory sales revenue grew 15% to $266.1 million, primarily from the commercial construction and transportation sector. For the full year 2024, RB Global’s net income doubled to $412.8 million, and adjusted EBITDA rose 26% to $1.3 billion. Looking forward, the company anticipates 2025 gross transaction value growth of 0-3% and adjusted EBITDA between $1.32 billion and $1.38 billion.
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