AYI’s Growth Initiatives Showing Positive Results
Analyst Christopher Glynn of Oppenheimer Equity Research has upgraded Acuity Brands Inc (NYSE: AYI) from “perform” to “outperform,” while raising his estimates for the company. The target price has been raised from $37 to $40.
According to Oppenheimer Equity Research, AYI’s share price has declined significantly in the recent past. Moreover, there is increased possibility of AYI’s market share strategies gaining traction, Oppenheimer Equity Research says. There are indications of AYI’s growth initiatives, especially the go-to market strategies, showing positive results, Oppenheimer Equity Research adds.
According to Oppenheimer Equity Research, the market for Acuity Brands’ energy-efficient relighting product has improved significantly during Q4. AYI may face pricing pressure in 2010, which may be offset by solid operating margin performance and a possible decline in raw material prices, Oppenheimer Equity Research adds.
The EPS estimates for FY2010, FY2011 and FY2012 have been raised from $1.85 to $2.00, from $2.15 to $2.40 and from $3.05 to $3.30, respectively.
