RBC Capital starts Auction Technology at ‘sector perform’

RBC Capital Markets started coverage of Auction Technology on Tuesday with a ‘sector perform’ rating and a 540p price target.

The bank said data suggests asset values in Industrial & Commercial continue to weaken. RBC forecasts 0.8% organic growth for FY24, below the guided 2-5% range.

"The recent sell-down from TA Associates has compounded concerns, and delivery of any organic growth in FY24 would likely be well received," it said.

"In the mid-term, ATG retains strong market positions and small gains in the group's KPIs could potentially drive material upside."

RBC noted the shares are trading at their lowest EBITDA multiple since the IPO and said its multiples-based valuation drives the 540p price target, supporting a sector perform rating.