Stock Price & Analysis

Based on the analysis of AYI's current stock performance, technical indicators, and market sentiment, it is recommended to hold or wait for further confirmation before making a decision to buy or sell. The stock shows mixed signals with a low RSI suggesting potential overselling, but the overall bearish trend and mixed analyst sentiment warrant caution.

The price prediction for Acuity Brands Inc. (AYI) in 2025 is expected to reach $290 per share, driven by strong earnings growth and improved fundamentals. The stock shows a Fibonacci resistance level at $290, aligning with positive growth projections and options activity targeting this price.

The S1 support level for AYI Stock is $259.26 ,The R1 resistant level for AYI Stock is $292.49.

As of the end of day on 2025-03-17, the price of AYI Stock was $261.23.

The target price for AYI Stock according to analyst rating is 352.20, with the highest price target at 380.00 and the lowest at 335.00. Analysts have a Moderate Buy rating on AYI Stock overall.

The market cap of AYI is $8.1B.

Analysis and Insights

Acuity Brands Inc. (AYI) appears to be overvalued based on its current valuation metrics and market sentiment. Here's a concise analysis:

1. Valuation Metrics:

   • PE Ratio: 21.03 (2024/Q2) and 23.60 (2025/Q1), indicating a premium valuation compared to industry peers.
   • EV/EBITDA: 12.47 (2024/Q2) and 14.68 (2025/Q1), suggesting high valuation relative to earnings.
   • PS Ratio: 2.06 (2024/Q2) and 2.62 (2025/Q1), reflecting a rich price-to-sales multiple.
   • PB Ratio: 3.61 (2024/Q2) and 4.04 (2025/Q1), above industry averages.

2. Growth Prospects:

   • EPS Growth: Historical growth of 16.7%, but projected to slow to 9.5% in 2025, which may not justify current valuations.
   • Cash Flow Growth: 6.1% year-over-year, positive but not exceptional.

3. Market Sentiment:

   • Recent options activity shows increased put volume, with 1,545 contracts trading for the $290 strike expiring in March 2025, indicating bearish sentiment or hedging activity.
   • While AYI's Warren Buffett strategy rating improved to 79%, this does not necessarily offset valuation concerns.

4. Dividend Yield:

   • The dividend yield of 0.22% (2024/Q3) is relatively low, offering limited income appeal.

Conclusion

AYI's high valuation metrics, slowing growth, and mixed market sentiment suggest it may be overvalued. Investors should exercise caution and consider whether the stock's growth prospects justify its current price.

Acuity Brands, Inc. is an industrial technology company. The Company uses technology to solve problems in spaces and light. It operates through two segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG). ABL's portfolio of lighting solutions includes commercial, architectural, and specialty lighting in addition to lighting controls and components that can be combined to create integrated lighting control systems. It offers devices, such as luminaires that utilize light emitting diode (LED) technology designed to optimize energy efficiency and comfort for various indoor and outdoor applications. ABL's brand portfolio include Aculux, Indy, Gotham, and more. ISG offers a building management platform and location-aware applications. Its building management platform includes products for controlling heating, ventilation, and air conditioning (HVAC), lighting, shades, and building access that deliver end-to-end optimization of building systems.

AYI stock is predicted to reach $400 by 2030, driven by strong earnings growth and positive cash flow trends. The stock's current price of $266.85, combined with its Fibonacci resistance levels and growth prospects, supports this bullish outlook. AYI's solid financials and industry position make it a promising long-term investment.

AYI has a total of 12200 employees.