William Blair analyst Ryan Merkel has maintained their bullish stance on AYI stock, giving a Buy rating on December 18.
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Ryan Merkel has given his Buy rating due to a combination of factors that highlight Acuity Brands’ resilience and earnings power despite a flat lighting market. His survey work suggests industry demand is roughly stable, and his forecasts for first-quarter sales and earnings are essentially aligned with consensus, reinforcing confidence that the company can meet near‑term expectations. Even with modest sequential margin pressure from normal seasonality and tariffs, he sees the company well positioned to manage profitability.
Merkel also expects management to reaffirm its fiscal 2026 earnings guidance, which implies continued share gains in a slightly declining market and modest pricing benefits. He views the implied EBIT margin outlook as conservative, noting that favorable mix and internal productivity should offset cost headwinds over time. Combined with a strong balance sheet and an outlook for roughly 10% EPS growth in fiscal 2026, these factors underpin his positive stance on the stock and support the Buy rating.
In another report released on December 18, Wells Fargo also maintained a Buy rating on the stock with a $405.00 price target.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AYI in relation to earlier this year.