NEW YORK (TheStreet) -- Ritchi Bros. Auctioners (RBA) shares were upgraded to "outperform" from "neutral" by analysts at Robert Baird on Monday.
The firm set a price target of $29 on the shares, suggesting a 20.5% increase.
TheStreet Ratings team rates RITCHIE BROS AUCTIONEERS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate RITCHIE BROS AUCTIONEERS INC (RBA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- RBA's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 12.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- RBA's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.12, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- RITCHIE BROS AUCTIONEERS INC has improved earnings per share by 47.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, RITCHIE BROS AUCTIONEERS INC increased its bottom line by earning $0.87 versus $0.75 in the prior year.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Services & Supplies industry average. The net income increased by 52.7% when compared to the same quarter one year prior, rising from $22.10 million to $33.75 million.
- You can view the full analysis from the report here: RBA Ratings Report