William Blair analyst Ryan Merkel has maintained their bullish stance on AYI stock, giving a Buy rating on March 27.
Ryan Merkel has given his Buy rating due to a combination of factors that reflect Acuity Brands’ strong market positioning and strategic advantages. The company reported a slight earnings per share (EPS) beat, driven by better-than-expected gross margins, which is a positive indicator of its operational efficiency. Despite the challenges posed by tariffs, Acuity Brands has reiterated its fiscal 2025 EPS guidance, showcasing confidence in its ability to manage these external pressures effectively.
Furthermore, Acuity Brands benefits from its operations in Mexico, which are shielded from the new tariffs that competitors importing from China and Asia face. This strategic advantage is expected to lead to market share gains. The company’s ability to raise prices to offset tariff costs and its focus on high-margin segments further support its competitive edge. Overall, Ryan Merkel believes that Acuity Brands is well-positioned to navigate current challenges and capitalize on opportunities, justifying the Buy rating.
According to TipRanks, Merkel is a 4-star analyst with an average return of 9.1% and a 57.29% success rate. Merkel covers the Industrials sector, focusing on stocks such as Aaon, Beacon Roofing Supply, and Fastenal Company.
In another report released on March 27, Morgan Stanley also maintained a Buy rating on the stock with a $370.00 price target.