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NEW YORK (TheStreet) -- Baird increased Ritchie Bros. (RBA)  price target to $39 from $34 following its yesterday's announced acquisition of IronPlanet.

The Canadian industrial auctioneer is buying the Pleasanton, CA-based e-commerce site for $758 million and is entering an agreement with IronPlanet's partner, Caterpillar (CAT), to auction its used heavy construction equipment. 

Baird analysts said the acquisition is a "game changer" as it amplifies material scale advantages, ensures a Caterpillar partnership, accelerates growth and adds new markets, according to TheFly.

The firm reiterated its "outperform" rating on Ritchie Bros.

Additionally, BofA/Merrill Lynch upgraded the company's stock rating to "neutral" from "underperform" this morning. 

The firm said the deal "makes strategic sense" and eliminates some competitive risks, TheFly reports. 

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Shares of Ritchie Bros were sliding in early morning trading on Wednesday. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate RITCHIE BROS AUCTIONEERS INC as a Buy with a ratings score of B+. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here:


RBA data by YCharts

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