Canaccord Genuity analyst George Gianarikas maintained a Buy rating on Lsi Industries (LYTS – Research Report) yesterday and set a price target of $26.00.
George Gianarikas has given his Buy rating due to a combination of factors, including LSI Industries’ strategic acquisitions and the potential for synergy value creation. The company’s recent acquisition of Canada’s Best Holdings (CBH), a vertically integrated designer and manufacturer of custom store fixtures, is expected to enhance LSI’s market position and drive revenue growth. This acquisition aligns with LSI’s Fast Forward strategy, which focuses on expanding through mergers and acquisitions to create shareholder value.
Furthermore, the acquisition of CBH is anticipated to be immediately accretive to LSI’s earnings, contributing positively to both margin rates and earnings per share. With CBH’s established presence in the Canadian market and its diverse customer base, LSI is well-positioned to benefit from higher margins and expanded market reach. These strategic moves reinforce Gianarikas’s confidence in LSI’s growth potential, leading to the reiteration of a Buy rating and a price target of $26.
LYTS’s price has also changed moderately for the past six months – from $15.530 to $17.750, which is a 14.29% increase.