10:57 AM EDT, 10/28/2025 (MT Newswires) -- RB Global's ( RBA ) risk-reward is turning more favorable with a positive story developing in 2026 despite a decline in repairable claims amid used auto asset concerns, BofA Securities said in a Tuesday note.

The brokerage sees gross transaction value rising in 2026 and inching higher in 2027 as the commercial, construction, and transportation segment inflects and the auto segment gains market share. The company can become a double-digit-growth EBITDA compounder on the back of lower cyclicality and high free cash flow.

RB Global's ( RBA ) 2023 acquisition of Insurance Auto Auctions presents a lucrative long-term opportunity for IAA to regain market share. IAA's partnership with Progressive could also provide a positive mix shift over time, according to the note.

BofA expects the weak growth in the autos segment to pick up in 2026 and 2027. The ongoing growth slump is due to a comparative issue and Q4 headwinds from a minimal hurricane season. As the company approaches a "clean year" in 2026, BofA said it expects growth to rise to a more normal algo in the salvage industry.

The brokerage said it upgraded the stock to buy from neutral and maintained its stock price target of $120 per share.

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