RBC raises Ritchie Bros stock price target to $116

Published 19/02/2025, 17:06
RBC raises Ritchie Bros stock price target to $116

On Wednesday, RBC Capital Markets adjusted its outlook on Ritchie Bros Auctioneers Incorporated (NYSE:RBA), increasing the price target from $107.00 to $116.00. The firm maintained its Outperform rating on the company’s shares. The revision follows Ritchie Bros’ announcement of another robust quarterly performance, which is expected to resonate positively with the investment community. The stock, currently trading at $105.79, has reached new 52-week highs and shows strong momentum, though InvestingPro data indicates it may be trading above its Fair Value.

RBC Capital’s analyst highlighted the company’s consistent outperformance, noting the strength of Ritchie Bros’ underlying business. With a current EBITDA of $1.23 billion and impressive revenue growth of 16.43% over the last twelve months, the company’s fundamentals appear solid. The midpoint of the company’s 2025 Adjusted EBITDA guidance exceeded the consensus, prompting the analyst to consider it a conservative estimate for the upcoming year. The first quarter of 2025 is anticipated to show the softest year-over-year metrics.

The analyst’s statement underscored the company’s solid performance: "A year of outperformance; RB Global (’RBA’) reported another strong quarter, which we expect will be well-received by investors." The positive outlook is bolstered by Ritchie Bros’ forward-looking guidance, which suggests continued growth and financial health. InvestingPro analysis confirms this view, assigning the company a "GREAT" financial health score of 3.09, with additional insights available in the comprehensive Pro Research Report.

The price target adjustment reflects an increase of $9, signifying RBC Capital’s confidence in Ritchie Bros’ potential for sustained growth and profitability. The firm reiterates its Outperform rating, signaling its belief that Ritchie Bros stock will continue to perform better than the broader market.

Investors are likely to keep a close eye on Ritchie Bros as the company progresses towards its 2025 financial goals. With the latest financial reports and guidance exceeding expectations, the company is positioning itself for a strong performance in the upcoming years.

In other recent news, RB Global, Inc. reported fourth-quarter earnings that exceeded analyst expectations, driven by robust revenue growth across its business segments. The company achieved adjusted earnings per share of $0.95, surpassing the consensus estimate of $0.79. Revenue for the quarter increased by 10% year-over-year to $1.14 billion, outpacing analyst projections of $1.06 billion. Additionally, total gross transaction value rose 2% to $4.1 billion, with notable growth in the automotive sector.

Service revenue experienced an 8% rise to $875.5 million, with a higher average service revenue take rate and increased gross transaction value. Inventory sales revenue also saw a 15% increase to $266.1 million, driven by gains in the commercial construction and transportation sectors. For the full year 2024, RB Global’s net income doubled to $412.8 million, and adjusted EBITDA grew by 26% to $1.3 billion. Looking forward, the company anticipates gross transaction value growth of 0-3% and adjusted EBITDA between $1.32 billion and $1.38 billion for 2025.

In related developments, BMO Capital Markets raised Ritchie Bros’ price target to $120 following a strong fourth-quarter performance that surpassed expectations with its EBITDA figures. BMO Capital reaffirmed an Outperform rating on the stock, highlighting confidence in the company’s growth potential for the second half of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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