Acuity Brands: Dimming Out Without M&A Catalyst


  • Acuity Brands’ top line growth is exceptional, owing to significant acquisitions made last year and a continued demand recovery.
  • The management is investing heavily in inventory in order to mitigate risks associated with supply chain issues.
  • It is facing temporary headwinds affecting its margins, making this stock unattractive at today’s price.
  • The management is still on the lookout for a good M&A which is a potential catalyst that could reintroduce some value to this stock.
  • Acuity Brands is trading at a weakening support and is trading fairly with no significant discount.
Glowing Light Bulb Standing Out From the Crowd

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Acuity Brands, Inc. (NYSE:AYI) is one of the leading technology companies in the industrial sector. The company specializes in providing advanced lightning solutions and designs intelligent space which helps customers achieve cost efficiency. AYI operates under two reportable segments: ABL segment

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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