Acuity Brands price target raised to $315 from $250 at Oppenheimer

Oppenheimer raised the firm’s price target on Acuity Brands to $315 from $250 and keeps an Outperform rating on the shares following quarterly results. Structurally improved gross margin contributed the majority of strong EPS upside, the firm notes. Revenue was within normal seasonality for the second straight quarter, reinforcing trend that adjustments to normal lead times are largely past. Q3 still faces a bit higher compare, and Acuity Brands is tracking to positive Q4 ABL revenue even in scenario of slightly less than normal seasonality. Contractor Select continues to see share runway, with high-level service and product quality at industry price points, affording distribution/retail quicker inventory turns, and at economized product design/production efficiencies for Acuity Brands, Oppenheimer adds.