JMP Securities analyst Joseph Osha maintained an Outperform rating and $160 price target on Acuity (AYI) ahead of the company's Q1 earnings report. The analyst sees "surprisingly strong industry data that could suggest a better than expected outcome for revenue," but noted that Acuity's management has been "focused on profitability and return measures" as opposed to revenue growth. Osha believes the company will use any environmental improvements to drive higher margins, instead of taking market share, adding that it is "more likely to see higher gross margin and continued tight control of operating expenses, as opposed to any upside in revenue." While Osha believes the company could drive higher earnings growth and valuation through leveraging its strengths, he believes management's focus is on increasing gross margin back to levels from before 2018.