UPDATE: Piper Jaffray Raises PT on Acuity Brands on Promising Outlook

In a report published Wednesday, Piper Jaffray analyst Jagadish Iyer reiterated a Neutral rating on

, and raised the price target from $67.00 to $72.00. In the report, Piper Jaffray noted, “AYI beat expectations for F3Q13 (May qtr.) and maintains its growth outlook for 2013. AYI reported F3Q13 revenues and non-GAAP EPS of $542m (cons. $519) and $0.97 (cons. $0.88) on 14% y/y growth in volumes and 11% y/y growth in revenues. Gross margins grew to 40.8% (+180bps q/q), helped by higher sales volumes, lower component costs and streamlined operating costs. LED lighting now comprises 20% of total revenues (15% last quarter) as LED sales grew 48% q/q, while traditional lighting grew an estimated 4% q/q, following two straight quarters of sales declines. We see no reason to doubt management's expectation to outperform 2013 market growth forecasts of mid-single digit growth given 11% y/y revenue growth in F3Q13, AYI's North America market leadership and likely improvement in construction trends. However, valuation appears rich as AYI trades at 21x (16x historical avg.), a 3-year high. Adjusting estimates and PT. Maintain Neutral.” Acuity Brands closed on Tuesday at $81.39.