In a report released today, Jeff Osborne from TD Cowen maintained a Buy rating on Acuity Brands, with a price target of $390.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Jeff Osborne has given his Buy rating due to a combination of factors that highlight Acuity Brands’ strong performance and potential for future growth. The company’s impressive fourth-quarter margins reflect successful cost management and a focus on productivity, which are expected to support ongoing performance initiatives. Additionally, the integration of AIS is on track, promising further margin expansion beyond fiscal year 2026.
Another reason for the positive outlook is the potential for market share gains in Acuity Brands Lighting (ABL), supported by strategic investments in underpenetrated verticals such as healthcare, refueling, and sports. While the fiscal year 2026 guidance assumes flat market growth, it is considered conservative, as order rates could benefit from potential interest rate cuts. The midpoint of the fiscal year 2026 guidance is slightly above consensus, indicating confidence in the company’s growth trajectory.
Based on the recent corporate insider activity of 20 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.