Equity Insights May 22nd: Nordson, Acuity Brands, Lowe’s, DaVita, PNC Financial

Lowe’s Companies Inc. (NYSE:LOW): RBC Capital reduced its target on Lowe’s after the company reported weaker than expected Q1 results. The firm continues to recommend the stock over the longer term but believes that the company’s near-term outlook is somewhat uncertain.

Nordson Corporation (NASDAQ:NDSN): Barrington says its thesis on shares of Nordson remains unchanged following the company’s Q2 results. The firm views the recent pullback in the stock as a buying opportunity and reiterates an Outperform rating on the name.

Acuity Brands, Inc. (NYSE:AYI): Jefferies believes Eaton’s (NYSE:ETN) acquisition of Cooper Industries (NYSE:CBE) was largely driven by Cooper’s exposure to electrical and infrastructure products and not the lighting market. As a result, the firm says investors should not expect Acuity Brands (NYSE:AYI), a pure play lighting fixture company, to enjoy a similar acquisition premium.

DaVita, Inc. (NYSE:DVA): RBC Capital questions DaVita’s decision to spend $4.4B to merge with HealthCare Partners, and the firm isn’t sure that the merger will produce a company that’s greater than the sum of its parts. However, the firm maintains an Outperform rating on DaVita.

PNC Financial Services Group Inc. (NYSE:PNC): After meeting with PNC’s management, RBC Capital believes that the bank’s outlook is still strong. The firm also thinks that the bank is undervalued compared with its peers and that the recent sell-off in bank stocks creates a buying opportunity. The firm maintains a Top Pick rating on PNC.

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