JPMorgan Chase & Co. Cuts A. O. Smith (NYSE:AOS) Price Target to $65.00

Key Points

• JPMorgan Chase cut its price target on A. O. Smith from $75 to $65 and kept a "neutral" rating, implying roughly a 7.9% upside from the prior close.
• A. O. Smith missed Q1 estimates (EPS $0.85 vs. ~$0.94; revenue $945.6M vs. ~$974M) and lowered FY2026 GAAP EPS guidance to $3.60–$3.90, citing China weakness and one‑time acquisition costs.
• The stock fell to $60.25 on the news; analysts are mixed (2 Buys, 7 Holds, 1 Sell) with an average target of $72.33 and the company has a market cap of about $8.33 billion.

A. O. Smith (NYSE:AOS - Get Free Report) had its price target cut by equities research analysts at JPMorgan Chase & Co. from $75.00 to $65.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the industrial products company's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 7.89% from the stock's previous close.

Other analysts have also recently issued reports about the company. Oppenheimer reissued an "outperform" rating and issued a $80.00 target price on shares of A. O. Smith in a research note on Friday. Citigroup cut their price objective on A. O. Smith from $78.00 to $74.00 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Stifel Nicolaus set a $75.00 price objective on shares of A. O. Smith in a report on Friday. Robert W. Baird set a $70.00 price objective on shares of A. O. Smith in a report on Friday. Finally, Wall Street Zen lowered shares of A. O. Smith from a "buy" rating to a "hold" rating in a research report on Saturday, February 14th. Two analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, A. O. Smith presently has an average rating of "Hold" and an average target price of $72.33.

A. O. Smith Stock Performance

NYSE AOS traded down $1.59 on Friday, hitting $60.25. 1,171,689 shares of the stock traded hands, compared to its average volume of 1,474,879. The firm has a market capitalization of $8.33 billion, a price-to-earnings ratio of 15.61, a PEG ratio of 1.33 and a beta of 1.35. A. O. Smith has a 12 month low of $59.83 and a 12 month high of $81.86. The business's fifty day moving average is $67.68 and its two-hundred day moving average is $68.96. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.94 and a current ratio of 1.50.

A. O. Smith (NYSE:AOS - Get Free Report) last released 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 analysts' expectations of $974.06 million. A. O. Smith had a return on equity of 29.51% and a net margin of 14.26%.The firm's quarterly revenue was down 1.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. As a group, equities analysts anticipate that A. O. Smith will post 3.98 EPS for the current fiscal year.

Insider Buying and Selling

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

Institutional Trading of A. O. Smith

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Rothschild Investment LLC lifted its stake in shares of A. O. Smith by 3,125.0% in the third quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 375 shares during the period. Creative Financial Designs Inc. ADV lifted its stake in shares of 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 acquired a new stake in shares of A. O. Smith in the third quarter valued at about $33,000. Torren Management LLC acquired a new stake in shares of A. O. Smith in the fourth quarter valued at about $31,000. Finally, Eagle Bay Advisors LLC acquired a new stake in shares of A. O. Smith in the fourth quarter valued at about $32,000. Hedge funds and other 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: Solid cash generation — operating cash flow and free cash flow improved significantly in Q1, providing balance sheet flexibility and support for shareholders despite weaker top‑line trends. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Neutral Sentiment: Investor materials available — the company posted its earnings press release, slide deck and full call/transcript, which provide detail on segment performance, supply‑chain impacts and assumptions behind the new guidance. Use these to model scenarios. Slide Deck / Press Release
• Negative Sentiment: Q1 missed consensus — reported EPS $0.85 vs. ~$0.94 expected and revenue $945.6M vs. ~$974M, signaling near‑term demand softness. A. O. Smith Q1 results summary
• Negative Sentiment: Lowered FY2026 outlook — management cut GAAP EPS guidance to $3.60–$3.90 (consensus ~3.98) and set revenue roughly flat to slightly below Street expectations, amplifying investor concern about growth for the year. FY2026 guidance update
• Negative Sentiment: China weakness and one‑time costs — Rest of World sales fell ~11% as China demand remained soft; transaction-related expenses from the Leonard Valve acquisition reduced near‑term earnings. Analysts flagged China drag as the key earnings headwind. A. O. Smith Balances Cash Strength With China Drag

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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