UPDATE: Goldman Sachs Initiates Acuity Brandsat Neutral Awaiting Better Entry Point
In a report published Friday, Goldman Sachs analyst Brian Lee initiated coverage on Acuity Brands (NYSE: AYI) with a Neutral rating and $85.00 price target.
In the report, Goldman Sachs noted, “We initiate coverage of Acuity Brands – a lighting products company – with a Neutral rating and 3% downside to our $85, 12-month price target. We see several positives underlying the investment case for Acuity: (1) leverage to a recovery in US non-residential construction spending given US (c.90% of sales) and new construction (c.50%) exposure, (2) growth in retrofit volumes owing to energy efficiency demand (e.g., LED is 20% of sales), and (3) capital allocation. But, these positives appear priced in given valuation is at an all-time high, and LED cannibalization risk – while low near term – warrants positioning for a better entry point, in our view.”
Acuity Brands closed on Thursday at $86.60.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.