Morgan Stanley analyst Christopher Snyder maintained a Buy rating on Acuity Brands (AYI – Research Report) yesterday and set a price target of $370.00.
Christopher Snyder’s rating is based on several compelling factors that position Acuity Brands favorably in the market. The company’s recent financial performance, particularly its second-quarter earnings per share of $3.73, slightly surpassed expectations, demonstrating strong execution capabilities. Additionally, Acuity Brands achieved a gross margin of 47.5%, which exceeded both Morgan Stanley’s estimate and the consensus, indicating robust operational efficiency and the positive impact of the QSC acquisition.
Furthermore, Acuity Brands benefits from its strategic positioning as a USMCA-compliant producer in Mexico, which provides a competitive edge over Asian competitors facing tariff pressures. This advantage is expected to contribute to the company’s relative outperformance, especially as the market anticipates potential improvements in the second half of the year. Overall, these factors collectively underpin Christopher Snyder’s Buy rating for Acuity Brands, highlighting its potential for growth and resilience in a challenging operating environment.
According to TipRanks, Snyder is a 3-star analyst with an average return of 2.3% and a 41.86% success rate. Snyder covers the Industrials sector, focusing on stocks such as Acuity Brands, Eaton, and Emerson Electric Company.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $330.00 price target.