A. O. Smith (NYSE:AOS) Given New $65.00 Price Target at Citigroup

Key Points

• Citigroup cut its price target on A. O. Smith to $65 from $74 and kept a "neutral" rating, joining several firms that have trimmed targets; the consensus analyst view is a "Hold" with a $70.44 average target.
• Earnings miss: A. O. Smith reported Q earnings of $0.85 vs. $0.94 expected and revenue of $945.6M vs. $974.1M, while issuing FY2026 EPS guidance of $3.60–$3.90 (sell-side average 3.85).
• The stock traded at $58.77 (down $1.58), with a market cap of $8.13B, P/E of 15.61, and a one-year range of $58.47–$81.86, reflecting recent analyst downgrades and weaker quarterly results.

A. O. Smith (NYSE:AOS - Get Free Report) had its price target reduced by equities researchers at Citigroup from $74.00 to $65.00 in a report released on Monday,Benzinga reports. The firm presently has a "neutral" rating on the industrial products company's stock. Citigroup's target price suggests a potential upside of 10.60% from the stock's current price.

AOS has been the topic of several other research reports. JPMorgan Chase & Co. decreased their price target on A. O. Smith from $75.00 to $65.00 and set a "neutral" rating on the stock in a research note on Friday. Stifel Nicolaus set a $75.00 target price on A. O. Smith in a research report on Friday. The Goldman Sachs Group dropped their price target on A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research report on Monday, April 13th. Oppenheimer reaffirmed an "outperform" rating and set a $80.00 price target on shares of A. O. Smith in a research note on Friday. Finally, Robert W. Baird set a $70.00 price objective on shares of A. O. Smith in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $70.44.

A. O. Smith Price Performance

Shares of NYSE AOS traded down $1.58 during trading on Monday, hitting $58.77. 796,906 shares of the company were exchanged, compared to its average volume of 1,481,406. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.56 and a quick ratio of 1.00. A. O. Smith has a 1 year low of $58.47 and a 1 year high of $81.86. The company has a market cap of $8.13 billion, a price-to-earnings ratio of 15.61, a PEG ratio of 1.31 and a beta of 1.23. The firm's fifty day moving average price is $67.68 and its 200 day moving average price is $68.97.

A. O. Smith (NYSE:AOS - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 EPS for the quarter, missing the consensus estimate of $0.94 by ($0.09). The company had revenue of $945.60 million during the quarter, compared to analyst estimates of $974.06 million. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The firm's revenue for the quarter was down 1.9% on a year-over-year basis. During the same quarter last year, the business earned $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, sell-side analysts expect that A. O. Smith will post 3.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total transaction of $82,126.56. Following the transaction, the senior vice president owned 2,201 shares of the company's stock, valued at $163,732.39. This represents a 33.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On A. O. Smith

Several large investors have recently added to or reduced their stakes in AOS. Rothschild Investment LLC grew its holdings in A. O. Smith by 3,125.0% in the 3rd quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company's stock valued at $28,000 after buying an additional 375 shares during the period. Creative Financial Designs Inc. ADV grew its holdings in A. O. Smith by 3,481.8% in the fourth quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 383 shares during the period. Root Financial Partners LLC purchased a new stake in A. O. Smith in the third quarter valued at approximately $33,000. Torren Management LLC acquired a new position in A. O. Smith during the fourth quarter worth approximately $31,000. Finally, Eagle Bay Advisors LLC acquired a new position in A. O. Smith during the fourth quarter worth approximately $32,000. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.

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