Update shared on 02 Dec 2025
Analysts raised their price targets for Acuity by as much as $60 per share. They cited improved margins, ongoing pricing power, and better-than-expected cost management as key drivers behind the more bullish outlook.
Analyst Commentary
Following Acuity's recent earnings report and margin performance, analysts offered updated perspectives on the company's outlook, reflecting both optimism and areas of caution.
Bullish Takeaways- Bullish analysts cited strong gross margin performance and earnings per share results as key drivers behind their upward revisions in price targets.
- Management's demonstrated pricing power and effective cost control were highlighted as evidence of a much improved business model. This was notable even in a challenging market with cost inflation and volume declines.
- Recent margin improvement was seen as a reflection of successful operational execution, including cost reduction and increased productivity efforts.
- Some observers view forward-looking guidance as conservative, and note there may be potential for order rates to accelerate if broader economic conditions, such as interest rates, become more favorable.
- Some analysts remain cautious, noting that while Q4 volume and pricing trends improved, these gains are beginning to moderate sequentially.
- Flat market growth assumptions in upcoming fiscal guidance highlight concerns about the pace of end-market recovery and sustained demand.
- Despite model updates and higher price targets, not all analysts issued outright positive ratings. Some continue to maintain neutral stances as they monitor overall market and volume trends.
What's in the News
- From June 1, 2025 to August 31, 2025, Acuity repurchased 92,459 shares for $26.54 million, representing 0.3% of shares outstanding as part of their ongoing buyback program (Key Developments).
- As of August 31, 2025, Acuity has completed the repurchase of 11,377,418 shares, accounting for 32.07% of shares outstanding, totaling $1,679.33 million under the buyback program announced in April 2018 (Key Developments).
Valuation Changes
- The Fair Value Estimate remains unchanged at $399.25 per share.
- The Discount Rate has decreased slightly, moving from 9.36% to 9.31%.
- The Revenue Growth Projection is stable at 6.39%.
- The Net Profit Margin forecast remains steady at approximately 12%.
- The Future P/E Ratio has declined marginally from 24.12x to 24.09x.
Disclaimer
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