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Investing.com - Canaccord Genuity raised its price target on LSI Industries (NASDAQ:LYTS) to $25.00 from $22.00 on Monday, while maintaining a Buy rating on the stock. The company, currently trading at $23.66 with a market capitalization of $685 million, has shown remarkable momentum with a 55% return over the past year according to InvestingPro data.
The price target increase reflects marginal changes to Canaccord’s profitability estimates for the lighting and retail display solutions provider. The new target is based on applying an approximately 19x multiple to the firm’s fiscal 2027 adjusted EPS estimate.
Canaccord noted that this multiple aligns with the current median multiple of approximately 19x calendar 2027 EPS reflected in LSI Industries’ comparison group.
The research firm expressed confidence in LSI’s management despite what it described as "an extremely volatile customer scheduling period underpinning financial performance across the last couple/few quarters."
Canaccord expects LSI’s management to continue rewarding long-term shareholders through "long-term organic growth, prudent capital allocation, and a conscientious approach to M&A."
In other recent news, LSI Industries reported its fourth-quarter fiscal 2025 earnings, showcasing a strong performance. The company achieved revenues of $155.1 million, marking a 20.2% increase year-over-year and a 17.0% rise from the previous quarter. These results surpassed both H.C. Wainwright’s estimate of $138.7 million and the market’s projection of $138.89 million. LSI Industries also reported an earnings per share (EPS) of $0.34, significantly beating the forecasted $0.22, resulting in a 54.55% surprise. The company attributed its revenue growth to increased demand in its lighting and display solutions markets. In response to these impressive results, H.C. Wainwright reiterated its Buy rating for LSI Industries, maintaining a price target of $30.00. These developments highlight the company’s robust performance and positive market reception.
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