Christopher Snyder, an analyst from Morgan Stanley, maintained the Buy rating on Acuity Brands. The associated price target remains the same with $410.00.
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Christopher Snyder has given his Buy rating due to a combination of factors that, in his view, leave Acuity Brands undervalued relative to its earnings power. He argues that the stock’s valuation multiple has compressed to a level that implies meaningful earnings cuts, yet he sees earnings holding near $20 per share in fiscal 2026, supported by resilient gross margins and mix benefits even if the upcoming quarter appears soft.
Looking further out, Snyder believes that, with disciplined capital deployment, Acuity can generate $22–$23 in earnings per share by fiscal 2027, a scenario he thinks is not reflected in the current share price. While he acknowledges near-term risks around second-quarter results and trade policy headlines, he expects a better-than-feared revenue performance, continued margin strength, and a potential mid‑single‑digit organic growth exit rate in fiscal 2026 to serve as catalysts for multiple expansion and share price appreciation.
AYI’s price has also changed moderately for the past six months – from $344.390 to $272.420, which is a -20.90% drop .