UPDATE: BMO Capital Markets Reiterates Underperform Rating, Lowers PT on Ritchie Bros. Auctioneers on Q1/13 Auction Data

In a report published Wednesday, BMO Capital Markets analyst Bert Powell reiterated an Underperform rating on Ritchie Bros. Auctioneers

, but lowered the price target from $21.00 to $19.00. In the report, Powell noted, “We believe the Q1/13 auction data highlights our previously stated concerns surrounding industry dynamics that are likely to limit GAP growth in the near to medium term. The recently launched EquipmentOne business looks interesting but we expect the contribution to remain modest. We expect ARR to be at the higher end of the targeted range but the resulting ROE, cash flow and earnings profile do not justify stretching our earnings multiple any higher than 20x our 2014 EPS estimate of $0.95. We maintain our Underperform rating as we believe valuation will limit upside and the stock could come under pressure as the street adjusts estimates in response to the reported auction data.” Ritchie Bros. Auctioneers closed on Tuesday at $19.90.