UPDATE: Oppenheimer Reiterates Perform as Ritchie Bros. Auctioneers (RBA) Announces IronPlanet Acquisition

August 30, 2016 9:14 AM EDT
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Price: $35.44 -0.03%

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    5 Buy, 10 Hold, 2 Sell

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    Up: 14 | Down: 19 | New: 11
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(Updated - August 30, 2016 9:16 AM EDT)

Oppenheimer reiterated a perform rating on Ritchie Bros. Auctioneers (NYSE: RBA) after the company announced that it has entered into an agreement to acquire IronPlanet. The acquisition is expected to meaningfully bolster RBA's GAP/revenue/EPS over the long term and be accretive to earnings within the first year. the company also announced entering into a long-term strategic alliance with Caterpillar to become its preferred global partner for live onsite and online auctions.

Analyst Scott Schneeberger commented, "Ritchie Bros. has announced entering into an agreement to acquire IronPlanet. A long-time familiar competitor to RBA, IronPlanet is best known for its unique "online" business model selling used heavy equipment/durable assets across multiple online channels. We view the acquisition as logical and opportunistic, as it expands upon RBA's base business model, which has been primarily centered upon unreserved auctions (no minimum pricing restrictions) every few months at physical locations (with online bidding included). The announced pairing creates a more diversified/ multi-channel company with greater scale. It also expands RBA's addressable market/ bolsters its digital capabilities."

For an analyst ratings summary and ratings history on Ritchie Bros click here. For more ratings news on Ritchie Bros click here.

Shares of Ritchie Bros closed at $28.89 yesterday.

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