H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Lsi Industries (LYTS – Research Report) today and set a price target of $20.00.
Amit Dayal has given his Buy rating due to a combination of factors, including LSI Industries’ solid performance and strategic acquisitions. LSI’s third-quarter financial results for fiscal year 2024 surpassed expectations, with revenues achieving $108.2 million, which is above the forecasted $105.7 million. This indicates resilience in the company’s Lighting segment, which experienced a modest year-over-year decline, signifying strength amidst industry challenges. The company also reported year-over-year improvement in gross margins within the Lighting segment, and a steady net profit increase, evidencing stable financial health.
Moreover, Dayal’s optimistic rating is reinforced by LSI’s strategic “Fast Forward” growth plan, which has been bolstered by the recent acquisition of EMI Industries. This acquisition is expected to enhance revenue streams and contribute to the company’s goal of significant cumulative revenue growth over the coming years. Despite some concerns regarding market demand and merger integration, management’s proven track record in successfully integrating acquisitions, such as the JSI acquisition in 2021, provides a positive outlook for effective synergy realization and future financial performance.
In another report released yesterday, Craig-Hallum also assigned a Buy rating to the stock with a $21.00 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.
