Wedbush Downgrades Acuity Brands (AYI); Unrealistic Market Expectations for LED Fixtures Likely Result In Disappointment During FY2012
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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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Wedbush downgraded Acuity Brands (NYSE: AYI) from Neutral to Underperform with a price target of $30.00.
Wedbush analyst says, "Market exuberance for Acuity’s push in LED fixtures does not match practical realities of the lighting market...Stratification of the fluorescent lighting market based on ballast technology indicates 90% of the market remains very sensitive to first-fit costs, implying initial fixture costs will be a long-term impediment to LED lighting growth."
"Expecting F1Q12 results to be inline to modestly below expectations. We forecast 1Q12 (Nov) revenue/EPS of $465.0m/$0.65 vs. consensus estimates of $466.1m/$0.66. We model gross margins of 41.0%, in line with consensus. The 1Q12 tax rate in our model is 35%, and note that a tax benefit last quarter helped offset higher expenses and margin erosion to produce EPS in line with consensus. Pricing should be a focus, as 4Q11 price growth of 2% was down from 3% in 3Q11."
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 $52.62 yesterday.
Wedbush analyst says, "Market exuberance for Acuity’s push in LED fixtures does not match practical realities of the lighting market...Stratification of the fluorescent lighting market based on ballast technology indicates 90% of the market remains very sensitive to first-fit costs, implying initial fixture costs will be a long-term impediment to LED lighting growth."
"Expecting F1Q12 results to be inline to modestly below expectations. We forecast 1Q12 (Nov) revenue/EPS of $465.0m/$0.65 vs. consensus estimates of $466.1m/$0.66. We model gross margins of 41.0%, in line with consensus. The 1Q12 tax rate in our model is 35%, and note that a tax benefit last quarter helped offset higher expenses and margin erosion to produce EPS in line with consensus. Pricing should be a focus, as 4Q11 price growth of 2% was down from 3% in 3Q11."
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 $52.62 yesterday.
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