RBC reinstates Ritchie's coverage with 'outperform' after IAA acquisition

RB Global

21/03/2023 13:15

** RBC Capital Markets reinstates coverage of Canada's
Ritchie Bros Auctioneers Inc  RBA.TO  with "outperform" rating,
sets PT at $70
    ** Brokerage calls RBA's acquisition of IAA Inc
"attractive"; says co will successfully realize the stated cost
synergies of $100-$120 mln within targeted timeframe 
    ** RBA completes acquisition of U.S. auto retailer IAA on
Tuesday, weeks after two proxy advisory firms urged shareholders
to reject the $7 bln deal
    ** RBA's acquisition provides multi-year opportunity to
drive meaningful top-line and earnings growth - Brokerage 
    ** NYSE-listed shares of Canadian equipment marketplace
 RBA.N  up 1.26% premarket
    ** 5 of 9 brokerages rate the stock "buy" or higher, and 4
"hold"; their median PT is $67.50 - Refinitiv 
    ** YTD, RBA U.S.-listed stock down roughly 7% vs a 3%
decline in the NYSE Composite index  .NYA  

 (Reporting by Pratyush Thakur in Bengaluru)
 ((pratyush.thakur@thomsonreuters.com))