Analysts Offer Insights on Conglomerates Companies: Fuelcell Energy (NASDAQ: FCEL) and Acuity Brands (NYSE: AYI)

By Ryan Adsit

Companies in the Conglomerates sector have received a lot of coverage today as analysts weigh in on Fuelcell Energy (NASDAQ: FCEL) and Acuity Brands (NYSE: AYI).

Fuelcell Energy (NASDAQ: FCEL)

In a report released today, Colin Rusch from Oppenheimer initiated coverage with a Buy rating on Fuelcell Energy (NASDAQ: FCEL) and a price target of $4. The company’s shares opened today at $1.87.

Rusch commented:

“We are initiating coverage of Fuel Cell Energy (FCEL) with an Outperform rating and $4 price target based on a 1.5x multiple applied to our 2019 revenue estimate discounted one year at 15%. We believe FCEL is the clear leader in stationary fuel cell applications, which is positioned to reach positive operational cash flow in the next 12-18 months.”

According to TipRanks.com, Rusch is a 4-star analyst with an average return of 7.4% and a 53.5% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.

Fuelcell Energy has an analyst consensus of Moderate Buy, with a price target consensus of $2.63.

Acuity Brands (NYSE: AYI)

In a report released today, Craig Irwin from Roth Capital maintained a Sell rating on Acuity Brands (NYSE: AYI), with a price target of $150. The company’s shares opened today at $172.03.

Irwin wrote:

“We remain cautious on rebounding growth, as past volume growth has benefited from an aggressive acquisition program, and a Y2-Y5 acquisition growth tail, where this benefit seems to have mostly disappeared. We would be sellers at current levels, as we see of AYI as an underperforming mid-single-digit grower with spotty execution. FY18 forecasts likely continue falling on hurricane disruption. Reiterate Sell and $150 PT . We expect an inline quarter when Acuity reports F4Q17 (Aug.) results. We forecast Rev/adj-EPS/adj-EBITDA of $990.0m/$2.35/$173.6m versus consensus at $974.9m/$2.43/$173.6m, respectively.”

According to TipRanks.com, Irwin is a 3-star analyst with an average return of 1.5% and a 51.6% success rate. Irwin covers the Industrial Goods sector, focusing on stocks such as Revolution Lighting Technologies, Cooper-Standard Holdings, and Dynamic Materials Corp.

Acuity Brands has an analyst consensus of Moderate Buy, with a price target consensus of $199.

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