KeyBanc Reiterates a 'Hold' on Acuity Brands (AYI); Share Gains Offsetting Choppy Market Trends
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Price: $358.43 -0.37%
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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KeyBanc reiterates a 'Hold' on Acuity Brands (NYSE: AYI).
KeyBanc analyst says, "Acuity Brands reported in line with Street expectations as it continues to execute well in a difficult demand environment. We remain bullish about Acuity's longer-term outlook given the multi-decade upgrade cycle in lighting and the Company's dominant market position. That said, we feel that at 18x CY12 EPS, this constructive outlook is already discounted by the market. Further, we believe the Street may be too optimistic about accelerating organic growth trends in FY12 given the current macro backdrop. We would look to become more constructive on shares in anticipation of improved non-residential construction trends, moderating steel prices, increased adoption of advanced lighting solutions and/or a lower valuation."
"We are lowering our fiscal 4Q EPS estimate by $0.03 to $0.80. Key revisions to our fiscal 4Q estimate include: 2% increase to sales (to $490 million), +40 bps to GM (to 41.7%) and +60 bps to OpEx:Sales. For FY11, we estimate EPS of $3.00 (down $0.13 from our previous estimate)."
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 $55.26 yesterday.
KeyBanc analyst says, "Acuity Brands reported in line with Street expectations as it continues to execute well in a difficult demand environment. We remain bullish about Acuity's longer-term outlook given the multi-decade upgrade cycle in lighting and the Company's dominant market position. That said, we feel that at 18x CY12 EPS, this constructive outlook is already discounted by the market. Further, we believe the Street may be too optimistic about accelerating organic growth trends in FY12 given the current macro backdrop. We would look to become more constructive on shares in anticipation of improved non-residential construction trends, moderating steel prices, increased adoption of advanced lighting solutions and/or a lower valuation."
"We are lowering our fiscal 4Q EPS estimate by $0.03 to $0.80. Key revisions to our fiscal 4Q estimate include: 2% increase to sales (to $490 million), +40 bps to GM (to 41.7%) and +60 bps to OpEx:Sales. For FY11, we estimate EPS of $3.00 (down $0.13 from our previous estimate)."
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 $55.26 yesterday.
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