Canaccord Genuity analyst George Gianarikas maintained a Buy rating on Lsi Industries (LYTS – Research Report) on April 19 and set a price target of $17.00.
George Gianarikas has given his Buy rating due to a combination of factors including LSI Industries’ strategic acquisition and the alignment with the company’s growth-oriented “Fast Forward” strategy. The recent acquisition of EMI Industries, which specializes in fixtures, displays, and food equipment for various retail and food service markets, has been cited as a significant positive move. This $50 million all-cash purchase, funded through existing credit facilities, is expected to enhance LSI’s Display Solutions Segment and drive revenue growth through cross-selling opportunities in the convenience store, grocery, and restaurant industries.
The analyst believes that this acquisition will swiftly contribute to the company’s revenue, supporting the company’s strategic direction. Furthermore, Gianarikas anticipates that LSI Industries will benefit from investment cycles within the targeted markets, leveraging EMI Industries’ offerings and existing customer relationships. These factors combined present a compelling case for the Buy rating, as they indicate a strong potential for LSI to capitalize on synergies and bolster its market position, which could lead to increased shareholder value over time.
Gianarikas covers the Industrials sector, focusing on stocks such as Enovix, NuScale Power, and Surf Air Mobility, Inc.. According to TipRanks, Gianarikas has an average return of -19.5% and a 26.32% success rate on recommended stocks.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $20.00 price target.
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Lsi Industries (LYTS) Company Description:
LSI Industries, Inc. engages in the provision a variety of lighting solutions. It operates through the following business segments: Lighting, Graphics, and Corporate and Eliminations. The Lighting segment manufactures and markets outdoor and indoor lighting for the commercial, industrial and multi-site retail markets, including the petroleum or convenience store market. The Graphics segment fabricates and sells exterior and interior visual image elements related to graphics. The Corporate and Eliminations segment includes the company’s administrative activities. The company was founded by Robert J. Ready, James P. Sferra, and Donald E. Whipple in 1976 and is headquartered in Cincinnati, OH.
