In a report published Monday, Oppenheimer Holdings reiterated its Perform rating on Acuity Brands AYI, and raised its price target from $64.00 to $66.00.
Oppenheimer Holdings noted, “We believe likely incremental softness in North American electrical markets creates some potential for light revenues when AYI reports FY4Q12 results on Tuesday, October 2. We suggest investors be alert for a possible window of opportunity. Peer commentary notes some slowing in nonresidential markets, and NEMA's August Electroindustry Business Confidence Index slipped to 35.7 from 38.6 in July (50-point level is neutral). AYI did note improving order rates earlier in 4Q (although expected continued demand volatility), and given improving margin trends, our estimates remain unchanged. Raising PT to $66 from $64, based on 16.5x CY13E EPS of $4.00 (FY13E is $3.75). With longer-term fundamentals lining up well against potential nearterm volatility, we recommend opportunism on periodic dips.”
Acuity Brands closed on Friday at $63.29.
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