Benzinga | Nov 9, 2021 10:55AM EST

RBC Capital Maintains, TD Securities Downgrades Rating On This Heavy Equipment Marketplace

* RBC Capital analyst Sabahat Khan raised the price target on Ritchie Bros Auctioneers Inc (NYSE:RBA) to $72 (an upside of 1.7%) from $65 and maintained a Sector Perform rating on the shares.

* Khan says The company's Q3 results were "in line to ahead" of consensus forecasts, but while the quarter can be viewed favorably, the tight equipment supply backdrop and the stock's elevated trading multiple leads to Khan's neutral view on the shares.

* TD Securities analyst Cherilyn Radbourne downgraded the company to Reduce from Hold and raised the price target to $69, from $64.

* The analyst believes that the cycle has turned against Ritchie Bros.'s counter-cyclical business and that secular growth initiatives are too early-stage to provide a meaningful offset.

* Radbourne is also concerned that Ritchie Bros. is paying a high price for Euro Auctions and sees the roughly $630 million increase in Ritchie Bros.' market cap on Friday as "overdone."

* Price Action: RBA shares are trading lower by 5.33% at $70.52 on the last check Monday.