RB Global: Getting Cheaper In Its Expanding Auction Business
Summary
- RB Global's recent acquisitions and partnerships have expanded its global footprint, positioning them well to outpace peers in the future.
- The company's service revenue grew significantly, driven by higher take rates and marketplace services, while inventory sales revenue declined.
- Analysts are optimistic about RB Global's EPS growth due to cost reduction initiatives and positive synergies from strategic acquisitions.
- Despite some risks, including customer concentration and declining operating margins, RB Global's strong expansion initiative and improved valuation make it an attractive investment.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RBA, RBA:CA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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