UPDATE: BMO Capital Markets Upgrades Ritchie Bros. Auctioneers to Outperform, Raises PT Ahead of Expected Earnings Recovery

In a report published Thursday, BMO Capital Markets analyst Bert Powell upgraded the rating on

from Underperform to Outperform, and raised the price target from $18.00 to $22.50. In the report, BMO Capital Markets noted, “We are upgrading Ritchie Bros. to Outperform from Underperform and raising our target price to $22.50 from $18 previously. We believe expectations for weaker-than-expected gross auction proceeds (GAP) in 2013 have played out and it is time for investors to position themselves for an expected earnings recovery in 2014. We have argued that Ritchie Bros. is more of a liquidity story than a simple market share gain story, but now have greater confidence that the increasing salesforce and improving mix of equipment (i.e., newer) will deliver meaningful y/y earnings growth.” Ritchie Bros. Auctioneers closed on Wednesday at $18.55.