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Acuity Brands (AYI) Cut to Neutral by Baird, Falls 5.6%
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Lighting fixture manufacturer and provider of specialty chemicals, Acuity Brands, Inc. (AYI - Free Report) was downgraded by Robert W. Baird from Outperform to Neutral on Dec 20. Acuity Brands declined 5.6% to $231.72 from $272.00 while the S&P 500 rose 0.4%.
The firm believes “the potential for a near-term demand lull could keep AYI range bound over the next couple of quarters after consensus FY 2017 and 2018 estimates already embedded a fairly bullish case, leaving a thin margin for error”.
The investment firm has set a price target price of $265 on Acuity Brands. This means Robert W. Baird believes there is a potential increase of 7.91% from the Dec 19 stock price of $245.57.
Investors should note that Acuity Brands’ shares have dipped 8.4% comparing favorably with the Zacks categorized Building Products - Lighting Fixtures industry dip to of 6.3%, year to date. Acuity Brands has also beaten earnings estimates in two of the last four quarters, the average beat being 2%.
Acuity Brands’ adjusted EPS in the fourth quarter of fiscal 2016 increased 27% year over year, but missed the Zacks Consensus Estimate by 7.9%. Fourth-quarter net sales of $925.5 million missed the Zacks Consensus Estimate by 2.4%. Revenues however increased 22% from the year-ago quarter. In fact, the quarter was the 14th in a row to have marked double-digit volume growth for the company.
The company believes that the growth rate for lighting and energy management solutions in the North American market will be in the mid-to-upper single digit range in fiscal 2017. Also, overall demand in its end markets is expected to be strong going ahead.
Key Picks
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) and AAON, Inc. (AAON - Free Report) .
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
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Acuity Brands (AYI) Cut to Neutral by Baird, Falls 5.6%
Lighting fixture manufacturer and provider of specialty chemicals, Acuity Brands, Inc. (AYI - Free Report) was downgraded by Robert W. Baird from Outperform to Neutral on Dec 20. Acuity Brands declined 5.6% to $231.72 from $272.00 while the S&P 500 rose 0.4%.
The firm believes “the potential for a near-term demand lull could keep AYI range bound over the next couple of quarters after consensus FY 2017 and 2018 estimates already embedded a fairly bullish case, leaving a thin margin for error”.
The investment firm has set a price target price of $265 on Acuity Brands. This means Robert W. Baird believes there is a potential increase of 7.91% from the Dec 19 stock price of $245.57.
Investors should note that Acuity Brands’ shares have dipped 8.4% comparing favorably with the Zacks categorized Building Products - Lighting Fixtures industry dip to of 6.3%, year to date. Acuity Brands has also beaten earnings estimates in two of the last four quarters, the average beat being 2%.
Acuity Brands’ adjusted EPS in the fourth quarter of fiscal 2016 increased 27% year over year, but missed the Zacks Consensus Estimate by 7.9%. Fourth-quarter net sales of $925.5 million missed the Zacks Consensus Estimate by 2.4%. Revenues however increased 22% from the year-ago quarter. In fact, the quarter was the 14th in a row to have marked double-digit volume growth for the company.
The company believes that the growth rate for lighting and energy management solutions in the North American market will be in the mid-to-upper single digit range in fiscal 2017. Also, overall demand in its end markets is expected to be strong going ahead.
Key Picks
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) and AAON, Inc. (AAON - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>