Jefferies Raises Price Target on Acuity Brands (AYI), Questions Continued Double Digit Growth
Tweet Send to a FriendGet Alerts AYI Hot Sheet
Price: $78.73 +1.81%
Rating Summary:
6 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
6 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade AYI Now!
Jefferies is maintaining its Hold rating on shares of Acuity Brands (NYSE: AYI) and is increasing its price target from $47 to $50 following the release of its Q1 results.
The company reported sales topped the Street's consensus as volumes rose 7 percent and on strong renovation revenue and LED sales. Earnings of $0.70 per share beat the Street's consensus of $0.67 per share as gross margins totaled 40.8 percent for the quarter. Management expects margins to improve over the next few quarters due to a decline in LED component costs and rising volumes.
LED sales grew 150 percent year over year and represented 5 percent of total sales. Jefferies believes this is positive news for companies such as Cree (Nasdaq: CREE) and SemiLEDs Corp. (Nasdaq: LEDS).
For FY12, the firm has raised its sales and EPS estimates from $1.9 billion and $2.81 to $1.96 billion and $3.12. Jefferies also increased its FY13 sales and EPS estimates from $2.02 billion and $3.23 to $2.076 billion and $3.51.
An analyst at Jefferies comments, "The stock continues to outperform given the value investors place on good management teams delivering predictable results. Also AYI is rare profitable “energy efficiency” company without exposure to Europe. We maintain our Hold rating waiting for signs of a US construction recovery."
For an analyst ratings summary and ratings history on Acuity Brands click here. For more ratings news on Acuity Brands click here.
Shares of Acuity Brands closed at $54.94 yesterday, with a 52 week range of $33.13-$61.45.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The company reported sales topped the Street's consensus as volumes rose 7 percent and on strong renovation revenue and LED sales. Earnings of $0.70 per share beat the Street's consensus of $0.67 per share as gross margins totaled 40.8 percent for the quarter. Management expects margins to improve over the next few quarters due to a decline in LED component costs and rising volumes.
LED sales grew 150 percent year over year and represented 5 percent of total sales. Jefferies believes this is positive news for companies such as Cree (Nasdaq: CREE) and SemiLEDs Corp. (Nasdaq: LEDS).
For FY12, the firm has raised its sales and EPS estimates from $1.9 billion and $2.81 to $1.96 billion and $3.12. Jefferies also increased its FY13 sales and EPS estimates from $2.02 billion and $3.23 to $2.076 billion and $3.51.
An analyst at Jefferies comments, "The stock continues to outperform given the value investors place on good management teams delivering predictable results. Also AYI is rare profitable “energy efficiency” company without exposure to Europe. We maintain our Hold rating waiting for signs of a US construction recovery."
For an analyst ratings summary and ratings history on Acuity Brands click here. For more ratings news on Acuity Brands click here.
Shares of Acuity Brands closed at $54.94 yesterday, with a 52 week range of $33.13-$61.45.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- UBS Raises PT on MEMC (WFR); Thinks Semi Sales Troughed in Q1
- Compuware (CPWR) Estimates Trimmed, PT Raised at Jefferies
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
