UPDATE: Canaccord Genuity Downgrades Ritchie Bros. Auctioneers to Hold, Lowers PT on Worrisome GAP Trends

In a report published Tuesday, Canaccord Genuity analyst Yuri Lynk downgraded the rating on

from Buy to Hold, and lowered the price target from $25.00 to $20.00. In the report, Canaccord Genuity noted, “There are worrisome trends developing in RBA's business that cause us to change our previously bullish take on the stock. Gross Auction Proceeds (GAP) missed our Q2/13 estimate by 16% despite a 13% y/y increase in the sales force and a full quarter of EquipmentOne. As a result, we believe 2013 guidance for GAP may be at risk. We are reducing our valuation multiple to 20x 2014E EPS from 25x, and our one-year target to US$20.00 from US$25.00. Given the 4% total return implied by our target price, we are lowering our rating to HOLD from Buy.” Ritchie Bros. Auctioneers closed on Monday at $19.59.