A. O. Smith (NYSE:AOS) Price Target Lowered to $64.00 at Citigroup

Key Points

• Citigroup lowered A. O. Smith’s price target to $64 from $65 while maintaining a neutral rating, implying roughly 6.1% upside from the prior close.
• Analyst sentiment remains cautious: A. O. Smith has an average “Reduce” rating and a consensus price target of $67.75, with recent target cuts from JPMorgan and Goldman Sachs.
• The company exceeded quarterly earnings and revenue estimates, reporting $1.03 in EPS on approximately $1.0 billion in revenue, but revenue declined 0.7% year over year and international weakness and cost pressures remain concerns.

A. O. Smith (NYSE:AOS - Get Free Report) had its price target dropped by equities research analysts at Citigroup from $65.00 to $64.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the industrial products company's stock. Citigroup's target price would suggest a potential upside of 6.12% from the company's previous close.

AOS has been the topic of several other research reports. JPMorgan Chase & Co. restated an "underweight" rating and issued a $60.00 target price (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. DA Davidson set a $67.00 price target on A. O. Smith and gave the stock a "neutral" rating in a report on Monday, May 4th. The Goldman Sachs Group lowered their price objective 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. Zacks Research downgraded A. O. Smith from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings lowered A. O. Smith from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 27th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, A. O. Smith presently has an average rating of "Reduce" and an average price target of $67.75.

A. O. Smith Price Performance

A. O. Smith stock traded up $0.50 during mid-day trading on Friday, reaching $60.31. The company had a trading volume of 1,189,858 shares, compared to its average volume of 1,606,040. The business has a fifty day simple moving average of $59.50 and a 200 day simple moving average of $65.43. The company has a market cap of $8.31 billion, a P/E ratio of 16.04, a P/E/G ratio of 1.38 and a beta of 1.16. A. O. Smith has a fifty-two week low of $54.16 and a fifty-two week high of $81.86. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31.

A. O. Smith (NYSE:AOS - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.07. The company had revenue of $1 billion for the quarter, compared to analysts' expectations of $994.89 million. A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The business's quarterly revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the business posted $1.07 earnings per share. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. On average, equities research analysts predict that A. O. Smith will post 3.74 earnings per share for the current year.

Hedge Funds Weigh In On A. O. Smith

Several hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. increased its holdings in A. O. Smith by 19.6% during the first quarter. Goldman Sachs Group Inc. now owns 939,302 shares of the industrial products company's stock worth $61,393,000 after buying an additional 154,201 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in A. O. Smith by 78.0% in the second quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company's stock valued at $63,000 after acquiring an additional 422 shares during the last quarter. Marshall Wace LLP bought a new position in shares of A. O. Smith during the 2nd quarter valued at approximately $5,212,000. California Public Employees Retirement System grew its position in shares of A. O. Smith by 11.4% during the 2nd quarter. California Public Employees Retirement System now owns 211,176 shares of the industrial products company's stock valued at $13,847,000 after acquiring an additional 21,657 shares during the period. Finally, Bank of Nova Scotia grew its position in shares of A. O. Smith by 165.3% during the 2nd quarter. Bank of Nova Scotia now owns 32,874 shares of the industrial products company's stock valued at $2,156,000 after acquiring an additional 20,485 shares during the period. Institutional investors own 76.10% of the company's stock.

Trending Headlines about A. O. Smith

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported $1.03 in adjusted EPS versus the $0.96 consensus estimate, while sales of approximately $1.0 billion topped forecasts of $994.9 million. However, adjusted EPS declined from $1.07 a year earlier and revenue fell 0.7% year over year. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: North American operations remained a key growth driver. Segment sales increased 5% to $820.5 million, supported by 21% boiler-sales growth, pricing actions and the Leonard Valve acquisition. Management also highlighted a 42% year-to-date increase in operating cash flow and a 67% rise in free cash flow to $233 million. A.O. Smith Q2 2026 Earnings Call Highlights
• Positive Sentiment: Share repurchase plans were increased. A. O. Smith raised its 2026 share-repurchase target to $300 million, potentially providing additional support for per-share results. The company also declared a quarterly dividend of $0.36 per share. A. O. Smith Declares Dividend
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. The company expects 2026 sales growth of 2% to 3%, adjusted EPS of $3.70 to $3.85 and revenue of about $3.9 billion, compared with analyst expectations of $3.77 adjusted EPS and $3.9 billion in revenue. A.O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and cost pressures remain concerns. Rest-of-world sales fell 19% to $194.9 million, primarily because of continued weakness in China’s consumer-appliance market. Higher input costs and lower residential water-heater volumes also pressured profitability.
• Negative Sentiment: Stifel reduced its price target from $76 to $70, although it retained a Buy rating. The revised target still implies approximately 16% potential upside from the referenced share price, but the cut signals more cautious near-term expectations. Stifel Price Target Update

A. O. Smith Company Profile

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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