Canaccord Genuity maintained a Buy rating on Acuity Brands (NYSE: AYI), and cut the price target to $265.00 (from $268.00), following the company's 1Q16 earnings report. Revenues were $736.6M compared to consensus estimate of $740M. EPS of $1.57 came in 1c below consensus estimate of $1.58. Although the recent acquisitions and consequent non-GAAP adjustments add a small layer of complexity to the company's financials, Canaccord believes that the acquisitions of Distech and Juno will drive continued growth and operating leverage.

Analyst Jed Dorsheimer commented, "Acuity has successfully executed on its transition from a discreet conventional lighting fixture manufacturer to a solutions-based company. This has driven top-line growth and meaningful operating margin expansion. We believe the company is on track by expanding further towards its tiered solution strategy, which should once again accelerate top-line growth and provide meaningful gross and operating leverage. We maintain our BUY rating and adjust our price target to $265 from $268 following the company's FQ1 results. The company's long-term focus and execution on the expansion of digital lighting, building automation and the Internet of Things remains unchanged and on-track."

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Shares of Acuity Brands closed at $215.48 yesterday.