UPDATE: Bank of America Downgrades Ritchie Bros. Auctioneers to Underperform Following Disappointing Q1'13 EPS

In a report published Thursday, Bank of America analyst Ross Gilardi downgraded the rating on Ritchie Bros. Auctioneers

from Neutral to Underperform, and lowered the price target from $23.00 to $17.00. In the report, Gilardi noted, “Based in Canada, RBA is the largest auctioneer of industrial equipment in the world. We believe RBA may struggle to generate the level of growth or returns to justify its above sector valuation. RBA may see increased competition for late model used construction equipment in the year ahead. As OEMs and dealers work through excess inventory, the market could retighten again on improving US construction fundamentals. Periods of tight construction equipment availability are more challenging for RBA.” Ritchie Bros. Auctioneers closed on Wednesday at $19.60.