UPDATE: Sterne Agee Upgrades Acuity Brands on Anticipated Non-Residential Construction Recovery

In a report published Friday, Sterne Agee analyst Andrew Huang upgraded the rating on

(NYSE; AYI) from Underperform to Neutral, but removed the $62.00 price target. In the report, Sterne Agee noted, “We are raising our estimates to reflect better-than-expected unit growth – in the near-term driven by continuing strength in renovation and residential and in the medium-term driven by non-resi construction. Although we believe revenue growth will continue and margins will head higher, with valuation at all-time highs, we are concerned that a multi-year, non-resi construction cycle is already priced into the stock. Upgrade to Neutral.” Acuity Brands closed on Thursday at $92.84.