RBA Stock Forecast & Price Target

RB Global has experienced significant pandemic-driven growth, particularly in the equipment markets, supported by an uptick in used equipment churn and improving total vehicle loss statistics that have nearly returned to pre-pandemic levels. The company's expansion of the Service Take Rate to 21.3%, along with a 77 basis point increase in Adjusted EBITDA margin, reflects its effective pricing strategies and diversified marketplace services. Furthermore, the revival of equipment sales post-2020, driven by factors such as low interest rates and aging equipment, positions RB Global favorably for sustained growth in an improving economic landscape.

The negative outlook on RB Global's stock is primarily driven by expectations of continued supply challenges within its end markets and faltering demand for used equipment, which could negatively impact gross transaction value (GTV) growth and adjusted EBITDA margins. Additionally, the company's recent acquisition of SYNETIQ has resulted in lower margins, further complicating profitability in an environment where new and used equipment demand is already slowing. With a forecasted decline in order growth and an anticipated prolonged tight supply situation, the company's ability to achieve its growth targets appears increasingly constrained.