The Bull Case For RB Global (RBA) Could Change Following Guatemala Market Alliance With Auto Traders of America

• IAA, a division of RB Global, Inc., recently announced the launch of a new Market Alliance in Guatemala with Auto Traders of America, allowing ATA to operate a local vehicle auction center and offer support to buyers interacting with IAA's inventory.
• This move is designed to expand IAA’s international footprint, streamline the buying process, and increase vehicle visibility in Latin America, potentially strengthening RB Global’s reach among global customers.
• We’ll consider how partnering with Auto Traders of America to expand into Guatemala may influence RB Global’s international growth outlook.

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RB Global Investment Narrative Recap

Shareholders in RB Global are generally backing a business model anchored in expanding global reach, robust asset marketplaces, and the ability to adapt to shifting industry trends. The new alliance in Guatemala aligns with the company's key catalyst, building an international buyer base and driving transaction volumes, yet its immediate effect on overall earnings or the company's response to softening transaction activity is likely modest for now. The largest risk remains macroeconomic headwinds, which could continue to dampen volumes and pressure guidance despite these incremental international moves. Earlier this year, IAA entered a Market Alliance with Moto Leader Group in Panama, similarly targeting Central American expansion. This series of partnerships is consistent with efforts to build cross-border capabilities and offset volatility in core markets, especially as transaction volumes remain sensitive to macro conditions and evolving digital models. However, investors should also consider that, despite international expansion, challenges around muted transaction activity tied to macro trends could...

Read the full narrative on RB Global (it's free!)

RB Global's outlook anticipates $5.7 billion in revenue and $913.2 million in earnings by 2028. This projection is based on an expected 8.6% annual revenue growth rate and an increase in earnings of $535.9 million from the current $377.3 million.

Uncover how RB Global's forecasts yield a $122.70 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered four fair value estimates for RB Global, spanning from US$67 to US$177.91 per share. Some focus on upbeat international catalysts, while others see caution in unpredictable transaction volumes, reminding you there is plenty of room to compare several perspectives.

Explore 4 other fair value estimates on RB Global - why the stock might be worth as much as 68% more than the current price!

Build Your Own RB Global Narrative

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• A great starting point for your RB Global research is our analysis highlighting 3 key rewards that could impact your investment decision.
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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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