Oppenheimer Maintains Perform on Acuity Brands

Oppenheimer is out with its report today on Acuity Brands AYI, maintaining Perform. In a note to clients, Oppenheimer writes, "AYI produced solid top-line performance, with over 12% top-line growth, including over 8% organic (price and volume), with earnings roughly in line, as growth investment continued to eke upwards. We anticipate solid support to FY12 revenue growth from AYI's sustained investment in NPIs, R&D, and channel access, and anticipate a return to more normal margin expansion trends (mid-20% incremental margins, plus targeted 70 bps annual productivity benefits) in FY12. We remain Perform currently, as served markets remain volatile, but note a strong June start to F4Q, and AYI's solid earnings growth prospects." Oppenheimer maintains a $62 PT on AYI. Shares of AYI closed Wednesday at $55.26.