Acuity's Loss Makes Buying A Bright Idea (Upgrade)

Acuity Inc. is upgraded from Hold to a very soft Buy after a 17% share price decline, making valuation more attractive. Despite Q2 revenue and earnings missing expectations, AYI delivered year-over-year growth in both, with notable strength in the Acuity Intelligent Spaces segment. Intelligent Spaces revenue surged 44.7% year-over-year, driven by the QSC acquisition and strong Distech product sales, offsetting weakness in the core lighting segment.