Wedbush Cuts Price Target on Acuity Brands (AYI), Anticipates Non-Residential Construction Slowdown

September 22, 2011 12:56 PM EDT
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Price: $206.45 +0.08%

Rating Summary:
    14 Buy, 12 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Wedbush is reaffirming its Neutral rating on shares of Acuity Brands (NYSE: AYI) and is cutting its price target from $44 to $30.

The firm is reducing its 2012 estimates as a result of rising probability of a slowdown in the non-residential construction segment. For 2011, Wedbush continues to estimate EPS of $2.48 with $1.766 billion in revenue, but is reducing its 2012 estimates from $2.95 and $1.83 billion to $2.75 and $1.80 billion.

Wedbush highlights that the company may begin experiencing material headwind growth from the anniversary effect of the Stimulus Plan spending.

An analyst at Wedbush comments, "Acquisitions continue to offer a growth opportunity, given Acuity’s ability to send differentiated new products through its mature channel, however, we do not see acquisitions as supportive of a compelling investment case."

For more ratings news on Acuity Brands click here and for the rating history of Acuity Brands click here.

Shares of Acuity Brands closed at $39.08 yesterday.

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