UPDATE: D.A. Davidson Raises PT on Acuity Brands Following Solid Q4 GAAP Earnings Report

In a report published Wednesday, D.A. Davidson & Co. analyst Brent Thielman reiterated a Neutral rating on Acuity Brands (NYSE: AYI), and raised the price target from $85.00 to $100.00.

In the report, D.A. Davidson & Co. noted, “Acuity reported Q4 GAAP earnings of $1.03 per share. These results compared to our estimate of $1.02 per share and consensus of $1.01. Prior year earnings (also GAAP) were $0.78 per share. Revenues of $579.8 million (+13% year-over-year) exceeded our estimate of $570.0 million and consensus of $569.3 million. Growth has accelerated over the last three quarters as Acuity leverages opportunities in renovation/retrofit projects and recovering residential activity. Volumes increased 14% year-over-year with increased activity in most channels, though sales growth was partially offset by headwinds from unfavorable price/mix associated with large renovation projects. Operating margins increased by a modest 30bp on an adjusted basis compared to the prior year, reflecting mix headwinds.”

Acuity Brands closed on Tuesday at $98.91.