Ritchie Bros. upgraded to Outperform at Scotiabank after deal-driven pullback

Scotiabank analyst Michael Doumet upgraded Ritchie Bros. (RBA) to Outperform from Sector Perform with a price target of $65, up from $59, noting that the initial reaction to the proposed IAA (IAA) deal was "quite negative," with Ritchie shares declining about 20% that day despite the company’s Q3 beat. In that context, Doumet thinks owning Ritchie shares here is "a win-win." Assuming no-deal, shares should trade towards or beyond the pre-deal share price of $63, while he thinks the best outcome would be for the deal to succeed as he thinks it would "unlock significant value for shareholders."