Canaccord Genuity Maintains a 'Buy' on Acuity Brands (AYI); Executing Well In A Difficult Macro; No Change To Thesis
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Price: $345.59 -4.11%
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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Canaccord Genuity maintains a 'Buy' on Acuity Brands (NYSE: AYI) price target of $63.00.
Canaccord analyst, Jonathan Dorsheimer, said, "While valuation could appear somewhat rich at current levels, we believe that investors will continue to place a greater multiple on the shares due to Acuity’s lower-risk growth story given its solid financial footing as well as its scarcity value as a lighting pure play. Given 2013 could represent a break-out year in terms of SSL adoption, we believe valuing the company on 2013 EPS best captures this transition story. We believe a 20x multiple is warranted, but feel it needs to be discounted by 10% (approximately the company’s WACC) for the time value of one year. As a result we are keeping our PT of $63, but are now basing it on an 18x multiple to our newly introduced C2013 EPS estimate minus net debt per share, from previously using 20x C2012 estimates. We have lowered our 2012 estimates slightly for conservatism and the lower Q1 results."
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.
Canaccord analyst, Jonathan Dorsheimer, said, "While valuation could appear somewhat rich at current levels, we believe that investors will continue to place a greater multiple on the shares due to Acuity’s lower-risk growth story given its solid financial footing as well as its scarcity value as a lighting pure play. Given 2013 could represent a break-out year in terms of SSL adoption, we believe valuing the company on 2013 EPS best captures this transition story. We believe a 20x multiple is warranted, but feel it needs to be discounted by 10% (approximately the company’s WACC) for the time value of one year. As a result we are keeping our PT of $63, but are now basing it on an 18x multiple to our newly introduced C2013 EPS estimate minus net debt per share, from previously using 20x C2012 estimates. We have lowered our 2012 estimates slightly for conservatism and the lower Q1 results."
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.
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