Jefferies Raises Price Target on Acuity Brands (AYI), Questions Continued Double Digit Growth
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Price: $343.10 +0.42%
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is maintaining its Hold rating on shares of Acuity Brands (NYSE: AYI) and is increasing its price target from $47 to $50 following the release of its Q1 results.
The company reported sales topped the Street's consensus as volumes rose 7 percent and on strong renovation revenue and LED sales. Earnings of $0.70 per share beat the Street's consensus of $0.67 per share as gross margins totaled 40.8 percent for the quarter. Management expects margins to improve over the next few quarters due to a decline in LED component costs and rising volumes.
LED sales grew 150 percent year over year and represented 5 percent of total sales. Jefferies believes this is positive news for companies such as Cree (Nasdaq: CREE) and SemiLEDs Corp. (Nasdaq: LEDS).
For FY12, the firm has raised its sales and EPS estimates from $1.9 billion and $2.81 to $1.96 billion and $3.12. Jefferies also increased its FY13 sales and EPS estimates from $2.02 billion and $3.23 to $2.076 billion and $3.51.
An analyst at Jefferies comments, "The stock continues to outperform given the value investors place on good management teams delivering predictable results. Also AYI is rare profitable “energy efficiency” company without exposure to Europe. We maintain our Hold rating waiting for signs of a US construction recovery."
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.
The company reported sales topped the Street's consensus as volumes rose 7 percent and on strong renovation revenue and LED sales. Earnings of $0.70 per share beat the Street's consensus of $0.67 per share as gross margins totaled 40.8 percent for the quarter. Management expects margins to improve over the next few quarters due to a decline in LED component costs and rising volumes.
LED sales grew 150 percent year over year and represented 5 percent of total sales. Jefferies believes this is positive news for companies such as Cree (Nasdaq: CREE) and SemiLEDs Corp. (Nasdaq: LEDS).
For FY12, the firm has raised its sales and EPS estimates from $1.9 billion and $2.81 to $1.96 billion and $3.12. Jefferies also increased its FY13 sales and EPS estimates from $2.02 billion and $3.23 to $2.076 billion and $3.51.
An analyst at Jefferies comments, "The stock continues to outperform given the value investors place on good management teams delivering predictable results. Also AYI is rare profitable “energy efficiency” company without exposure to Europe. We maintain our Hold rating waiting for signs of a US construction recovery."
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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