Breaking Down Acuity Brands: 5 Analysts Share Their Views

Throughout the last three months, 5 analysts have evaluated Acuity Brands AYI, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $317.0, a high estimate of $370.00, and a low estimate of $289.00. This upward trend is evident, with the current average reflecting a 12.41% increase from the previous average price target of $282.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Acuity Brands by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Acuity Brands. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Acuity Brands compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Acuity Brands's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Acuity Brands's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Get to Know Acuity Brands Better

Acuity Brands Inc is the parent company of Acuity Brands Lighting and other subsidiaries, which provide lighting products for commercial, institutional, industrial, and residential applications. These products include luminaires, lighting controls, lighting components, and integrated lighting systems that use a combination of light sources. Customers include electrical distributors, electric utilities, retail home improvement centers, and lighting showrooms. A majority of the firms' revenue is generated in the United States.

Financial Insights: Acuity Brands

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Acuity Brands's revenue growth over a period of 3 months has faced challenges. As of 31 May, 2024, the company experienced a revenue decline of approximately -3.22%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Acuity Brands's net margin excels beyond industry benchmarks, reaching 11.77%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Acuity Brands's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.17% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Acuity Brands's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.18%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.26, Acuity Brands adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.