Analysts Are Betting On Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) With A Big Upgrade This Week
Shareholders in Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the five analysts covering Ritchie Bros. Auctioneers are now predicting revenues of US$3.5b in 2023. If met, this would reflect a substantial 99% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$1.8b in 2023. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.
Check out our latest analysis for Ritchie Bros. Auctioneers
There was no particular change to the consensus price target of US$64.38, with Ritchie Bros. Auctioneers' latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Ritchie Bros. Auctioneers analyst has a price target of US$72.00 per share, while the most pessimistic values it at US$51.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Ritchie Bros. Auctioneers' growth to accelerate, with the forecast 99% annualised growth to the end of 2023 ranking favourably alongside historical growth of 9.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ritchie Bros. Auctioneers to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Ritchie Bros. Auctioneers this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Ritchie Bros. Auctioneers.
Of course, there's always more to the story. We have analyst estimates for Ritchie Bros. Auctioneers going out to 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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