Buy Acuity Brands (AYI)

By Linda McDonough • August 15, 2016

I’ve added Acuity Brands (NYSE: AYI) to our portfolio.
The company is a leading provider of lighting and heating solutions, and is a pure play on the explosive demand for intelligent lighting and heating for commercial, educational, industrial and residential buildings. Acuity’s recent acquisitions of Juno Lighting and Distech dramatically expand its reach.
Although it is significantly larger than most of our small to mid-cap holdings, its growth prospects are too big to ignore. Acuity does trade options so we’ll be reviewing those to offer investors the chance to get on board with a smaller up-front investment.
Our target is $342 based on earnings of $10 in 2017.

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Jon D.

09/02/16 ‐ 9:30am ET September 2, 2016 at 9:30am ET

Hi Linda,
Just a note to say it would be of interest to me to get an Option recommendation from you on AYI. I tried my own option idea, but not pleased with it.
time to tune in on LE hope they are down this AM I noticed the last trade last evening before the close was a sell of 8051 shares in LE

Michael S.

02/07/17 ‐ 10:18am ET February 7, 2017 at 10:18am ET

Hi Linda,
Is your target for AYI still at $342 for 2017?
Its graph is not promising.

Linda McDonough

02/07/17 ‐ 12:38pm ET February 7, 2017 at 12:38pm ET

Michael,
AYI has been a tough stock. It is currently in my “penalty box” after missing one quarter. I am reviewing the assumptions supporting that price target, so it may be adjusted lower. I think the stock should go higher from here though and would be a buyer up to $220. Look for an update soon. I typically review all my price targets once we get through each earnings season.
Best,
Linda

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About The Author

Linda McDonough

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Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.