Morgan Stanley Cuts Acuity (AYI) Price Target to $380
Key Points
- Morgan Stanley maintained its Overweight rating on Acuity Inc. on October 20, 2026, lowering its price target to $380 from $410.
- Morgan Stanley's $380 price target implies 20.23% upside from Acuity Inc.'s ($AYI) current $316.07 share price.
- Acuity Inc. recently traded near $316.07, below its 50-day moving average of $319.62 but above its 200-day moving average of $310.07.
- Other Wall Street firms recently updated their outlooks on the stock, including Baird and Oppenheimer ahead of the next earnings report.
Since the rating, $AYI is up 2.5% to date (from the $311.02 close on Oct 20, 2026).
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Morgan Stanley reaffirmed its Overweight rating on Acuity Inc. (NYSE: AYI) on October 20, 2026, while lowering its price target from $410.00 to $380.00. The research note provides a forward-looking view on the industrial equipment provider, which closed at $311.02 on the day of the rating adjustment.
AYI
Acuity Inc.
Morgan Stanley vs. the S&P 500
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Morgan Stanley's Call on Acuity Inc.
On October 20, 2026, Morgan Stanley kept its Overweight rating in place while trimming its target to $380.00 from its previous target of $410.00. The firm continues to back the stock despite shifting market expectations across the sector.
Other Institutional Activity in Acuity Inc.
AQR Capital Management, LLC grew its holdings by 838,605 shares, ending with 1,274,516 shares worth about $404,149,031.00. Fuller & Thaler Asset Management Inc. grew its holdings by 222,493 shares, ending with 772,130 shares worth about $244,842,427.00. American Century Companies Inc reduced its holdings by 5,542 shares, ending with 743,411 shares worth about $235,735,632.00.
Acuity Inc. Stock Down 0.2%
Acuity Inc. recently traded around $316.07 as of October 22, 2026. That puts the shares up about 1.6% since the rating note, while sitting below the 50-day moving average of $319.62 and above the 200-day moving average of $310.07.
$AYI price target
Acuity Inc. daily closes and this analyst's $380 target. Not advice.
Recent Earnings
The company reported trailing-twelve-month revenue of $4,641,800,192.00 alongside basic earnings of $17.05 per share. Its net profit margin stands at 11.4% with a return on equity of 18.6%. The next earnings release is scheduled for January 7, 2027.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
Analyst view held steady after the report.
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EPS & revenue
EPS beat estimates by 1.4%. Revenue missed estimates by 11.1%.
- Profit surprise
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Pre-earnings setup
Expectations were about average going in.
- Analyst signal
- Earnings quality
Earnings Call Summary
Acuity had a mixed quarter. Reported revenue of $1.06 billion was $5 billion above last year but missed consensus by $132 million. The lighting business fell 3 percent year-over-year but gross margins improved 70 basis points to 45.7 percent through pricing and productivity. The spaces unit grew strongly, with sales up $77 million, driven by Distech controls and QSC audio-visual gear. They cut full-year guidance because the lighting market remains weak, with customers releasing projects slowly despite a full pipeline.
Guidance Management cut the full-year lighting sales outlook to flat to down low single digits year-over-year, from an earlier expectation of up low single digits. They cited soft market conditions, project delays from government shutdown, and data center competition for contractors as main pressures. The spaces business still expects low to mid-teens growth for the full year.
Negative report. Results or guidance disappointed and expectations are likely to move lower.
Dividend
Acuity Inc. pays an annual dividend rate of $0.80 per share, yielding 0.25% with a payout ratio of 4.9%.
Insider Buying and Selling at Acuity Inc.
Chief Financial Officer Karen J Holcom sold 2,076 shares on June 1, 2026, at an average price of $303.14 for a total value of $629,319.00. General Counsel Barry R. Goldman sold 1,200 shares on July 2, 2026, at $365.65 for $438,780.00. Later, Karen J Holcom sold another 2,000 shares on September 1, 2026, at $329.62 for $659,240.00. Director Laura O'Shaughnessy bought 73 shares on October 16, 2026, at $302.32 for $22,069.00.
Analysts Set New Price Targets
William Blair downgraded the stock to a Market Perform rating on September 28, 2026. Baird maintained a Neutral rating while lowering its target from $390.00 to $360.00 on September 29, 2026, and later trimmed it to $348.00 on October 2, 2026. Oppenheimer kept an Outperform rating on October 8, 2026, while adjusting its target from $440.00 to $415.00. Wall Street analysts maintain a consensus buy recommendation with an average price target of $370.17 across 6 tracked opinions.
About Acuity Inc.
Acuity Inc. is an industrial firm based in Atlanta, Georgia, specializing in lighting, lighting controls, building management systems, and audio-video platforms through its lighting and intelligent spaces segments.
Bottom Line
Investors will look toward the upcoming earnings report on January 7, 2027, for further insight into the company's operational performance. Market participants should monitor upcoming institutional filings and analyst revisions as shares trade near key moving averages.
Related Filing Alerts
Source: Morgan Stanley's rating change on $AYI (Oct 20, 2026). Written by software, not financial advice. How we make alerts