Ritchie Bros. Upgraded By Jefferies

In a report published Monday, analysts at Jefferies upgraded

from Hold to Buy. The price target has been raised from $24 to $30. The company is likely to benefit from the slowing in some of the equipment markets. The company's recent auction trends imply that Ritchie Bros' growth is progressing significantly ahead of expectations. "And, we believe new management can boost growth and improve an underutilized balance sheet," the analysts stated. The company's Gross Auction Proceeds for the first three months of 2015 increased 12 percent, year on year, significantly higher than the flat guidance. In addition, Ritchie Bros is well positioned to benefit from the increasing equipment from the energy markets and regions, as well as reduction in inventories in the farm, energy, mining and some construction markets, with a steady rise in values. "We believe this dynamic should benefit RBA as the company provides sellers a larger buying market (including online) versus traditional point to point sales," the analysts explained. The company's new management has been focusing its sales force on various other sales channel to tap the large non-auction market as well. Jefferies expects the focus of the new management on the At Risk business would lead to profits. "Beyond the top-line and improved return metrics we believe that RBA has significant balance sheet opportunities to enhance shareholder value," Jefferies added.