Balancing Near-Term Headwinds with Long-Term Upside: Justifying a Buy Rating on Acuity

William Blair analyst Ryan Merkel has maintained their bullish stance on AYI stock, giving a Buy rating today.

Ryan Merkel has given his Buy rating due to a combination of factors that balance near-term weakness with attractive valuation and long-term strengths. He expects Acuity’s upcoming quarter to fall short of consensus and guidance to be reduced, reflecting softer lighting demand, cautious project activity, and pressure from tariffs and cost inflation, but views these challenges as already reflected in the recent share price decline.

At the current multiple, he believes the stock trades below its historical valuation despite Acuity’s track record of gaining share, structurally higher margins, and incremental benefits from the QSC acquisition and controls mix. Using his 2027 EBITDA outlook and a modestly higher multiple, he sees meaningful upside potential if macro uncertainty and geopolitical risks ease, supporting his Outperform (Buy) recommendation despite the subdued near-term backdrop.

In another report released today, TipRanks – Google also upgraded the stock to a Buy with a $297.00 price target.