Market Overview

UPDATE: Goldman Sachs Initiates Acuity Brandsat Neutral Awaiting Better Entry Point

Related AYI
29 Top Stock Ideas For October And Beyond
Benzinga's Top Upgrades, Downgrades For October 13, 2017

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.

Latest Ratings for AYI

Oct 2017KeyBancInitiates Coverage OnSector Weight
Oct 2017JMP SecuritiesUpgradesMarket UnderperformMarket Perform
Sep 2017BairdDowngradesOutperformNeutral

View More Analyst Ratings for AYI
View the Latest Analyst Ratings

Posted-In: Brian Lee Goldman SachsAnalyst Color Initiation Analyst Ratings


Related Articles (AYI)

View Comments and Join the Discussion!

Partner Center