Canaccord Genuity Maintains a 'Buy' on Acuity Brands (AYI); Acquisition of Competitor Positive for Valuation...Possible Beginning for Consolidation?
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Price: $343.10 +0.42%
Rating Summary:
12 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
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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Canaccord Genuity maintains a 'Buy' on Acuity Brands (NYSE: AYI) price target of $81.00.
Analyst, Jonathan Dorsheimer, said, "Today Eaton Corp (NYSE: ETN) announced its intent to acquire Cooper Industries (NYSE: CBE) for $11.8B, or approximately 2x forward sales and 11x TTM EBITDA...While Cooper is a diversified electrical components company, it has a lighting business similar in size to that of Acuity and is thus often used as a comp...While CBE is far from a pure play, this acquisition nonetheless reopens the debate for consolidation in the lighting industry."
"While an M&A exit is possible, we are not claiming consolation as an investment thesis on AYI shares. Instead we see continued outperformance of the overall industrials and lighting market with growing earnings power over the next 3-5 years, levered by LED and controls product families."
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 $53.26 yesterday.
Analyst, Jonathan Dorsheimer, said, "Today Eaton Corp (NYSE: ETN) announced its intent to acquire Cooper Industries (NYSE: CBE) for $11.8B, or approximately 2x forward sales and 11x TTM EBITDA...While Cooper is a diversified electrical components company, it has a lighting business similar in size to that of Acuity and is thus often used as a comp...While CBE is far from a pure play, this acquisition nonetheless reopens the debate for consolidation in the lighting industry."
"While an M&A exit is possible, we are not claiming consolation as an investment thesis on AYI shares. Instead we see continued outperformance of the overall industrials and lighting market with growing earnings power over the next 3-5 years, levered by LED and controls product families."
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 $53.26 yesterday.
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