Industry Analysts Just Upgraded Their Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) Revenue Forecasts By 89%

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 analysts have sharply increased their revenue numbers, with a view that Ritchie Bros. Auctioneers will make substantially more sales than they'd previously expected.

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 sizeable 99% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$1.8b of revenue in 2023. It looks like there's been a clear increase in optimism around Ritchie Bros. Auctioneers, given the chunky increase in revenue forecasts.

See our latest analysis for Ritchie Bros. Auctioneers

We'd point out that there was no major changes to their price target of US$64.38, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Ritchie Bros. Auctioneers at US$72.00 per share, while the most bearish prices it at US$51.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ritchie Bros. Auctioneers shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Ritchie Bros. Auctioneers is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Ritchie Bros. Auctioneers.

But wait - there's more! We have analyst estimates for Ritchie Bros. Auctioneers going out to 2025, and you can see them free on our platform here.

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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.