UPDATE: Stifel Nicolaus Initiates Hold on Acuity Brands; Says Good Outlook, Premium Valuation

In a recent repost, Stifel Nicolaus says it initiates its coverage on Acuity Brands (NYSE AYI) with a Hold rating. Stifel Nicolaus comments, "Acuity is a pure-play lighting company that we believe is well-positioned to benefit from strong secular spending on energy efficient lighting fixtures and control systems. We believe the accelerating adoption of solid-state lighting products (LED) and lighting controls should drive significantly higher rates of lighting industry growth in the recovery and expansion than were seen in past cycles. …Our enthusiasm for AYI is tempered by the valuation. Shares are trading well above historical multiples and at a premium to peers Cooper and Hubbell, which we forecast to have higher margins and capital returns over the next three years." AYI closed at $56.62 on Thursday.