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Canaccord Genuity's George Gianarikas raised their price target on LSI Industries (NASDAQ: LYTS) by 18.2% from $22 to $26 on 2025/01/25. The analyst maintained their Strong Buy rating on the stock.

LSI Industries reported its Q2 2025 earnings.

Hiking their price target in response, Gianarikas pointed out that, in the quarter, LSI Industries continued to build its business inorganically through the recently announced acquisition of EMI Industries.

Looking ahead, the analyst told readers that Canaccord Genuity expects the company to continue to reward long-term shareholders "through long-term organic growth, prudent capital allocation, and a conscientious approach to M&A."

Earnings Report

For Q2 2025, LSI Industries reported:

• EPS of $0.19, which beat the consensus estimate by 8% but missed Q2 2024's $0.20.
• Revenue of $147.7M, which beat the consensus estimate by 14% and Q2 2024 by 36%.

Management did not provide financial guidance in its press release or earnings presentation.

President & CEO James A. Clark commented: “LSI delivered 14% organic sales growth in the Q2, supported by strong demand across our core refueling, c-store, and grocery verticals.

“Including contributions from our most recent acquisition of EMI, which continues to perform ahead of initial expectations, LSI generated total sales growth of 36% in the second quarter, while adjusted net income, adjusted EBITDA and free cash flow generation all increased on-a-year-over-year basis.

“LSI remains well positioned to drive continued, profitable growth entering 2H 2025.

"Order rates and backlog remain strong; demand conditions across most end-markets are robust; and we’re capitalizing on favorable, multi-year secular opportunities where our vertically integrated, solutions-based model is uniquely suited to support our growing base of customers.

"We also continue to prioritize a combination of organic and inorganic growth, as outlined within our Fast Forward strategy, while maintaining our disciplined, returns-driven approach toward capital deployment.”