Canaccord Genuity on Sustainability & CleanTech: 2012 Best Ideas
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Price: $100.03 +1.63%
Rating Summary:
16 Buy, 16 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
16 Buy, 16 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity on Sustainability & CleanTech: 2012 Best Ideas
Analyst, John Quealy, said, "We provide our “best ideas” picks within the Sustainability & CleanTech sector for 2012 below. While economic, political and regulatory headwinds continue to weigh on sector performance, we believe that adoption trends for technologies that optimize energy creation and consumption remain very healthy longer term. We look for the growing incorporation of clean and efficient solutions over the coming months and years to re-accelerate this product cycle, while the identification of key themes, markets, technologies and players remains critical."
For Energy & Power Technologies, Water and Bioresources:
Itron (Nasdaq: ITRI) - After a tough ~24 months, we remain decidedly contrarian as shares continue to trough, yet the multi-year Smart Grid product cycle continues to unfold through mid-decade. We favor the company’s strong market share and FCF generation capabilities (10%+ FCF yield), ongoing restructuring efforts, share buyback and active M&A program against current investor concerns about ’12 & ’13 EPS power and European exposure. We find recently reinstalled CEO LeRoy Nosbaum acting with an appropriate degree of urgency to catalyze value creation at the current share price.
For Energy & Power Technologies by Jonathan Dorsheimer:
Acuity Brands (NYSE: AYI)(BUY): We believe that LEDs will help accelerate Acuity’s traditional sales over time while growing to become accretive to the business model. As such, we see the potential for $3.50 to $4.00 in earnings power per share in 2013/2014 as the secular trend starts to manifest. We remain aggressive buyers on pullbacks from the fits and starts in the non-residential construction markets, and we view 2012 as the right time to build a meaningful position in the shares. Given the positive tailwinds we are raising our price target to $63, up from $50 previously, based on a 20x multiple to our C2012 EPS estimate of $3.35 minus $4.00 in net debt per share.
Analyst, John Quealy, said, "We provide our “best ideas” picks within the Sustainability & CleanTech sector for 2012 below. While economic, political and regulatory headwinds continue to weigh on sector performance, we believe that adoption trends for technologies that optimize energy creation and consumption remain very healthy longer term. We look for the growing incorporation of clean and efficient solutions over the coming months and years to re-accelerate this product cycle, while the identification of key themes, markets, technologies and players remains critical."
For Energy & Power Technologies, Water and Bioresources:
Itron (Nasdaq: ITRI) - After a tough ~24 months, we remain decidedly contrarian as shares continue to trough, yet the multi-year Smart Grid product cycle continues to unfold through mid-decade. We favor the company’s strong market share and FCF generation capabilities (10%+ FCF yield), ongoing restructuring efforts, share buyback and active M&A program against current investor concerns about ’12 & ’13 EPS power and European exposure. We find recently reinstalled CEO LeRoy Nosbaum acting with an appropriate degree of urgency to catalyze value creation at the current share price.
For Energy & Power Technologies by Jonathan Dorsheimer:
Acuity Brands (NYSE: AYI)(BUY): We believe that LEDs will help accelerate Acuity’s traditional sales over time while growing to become accretive to the business model. As such, we see the potential for $3.50 to $4.00 in earnings power per share in 2013/2014 as the secular trend starts to manifest. We remain aggressive buyers on pullbacks from the fits and starts in the non-residential construction markets, and we view 2012 as the right time to build a meaningful position in the shares. Given the positive tailwinds we are raising our price target to $63, up from $50 previously, based on a 20x multiple to our C2012 EPS estimate of $3.35 minus $4.00 in net debt per share.
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