Oppenheimer analyst Bryan Blair maintained a Hold rating on AO Smith Corp (NYSE: AOS) yesterday. The company’s shares closed yesterday at $59.32.
Blair noted:
“We toured A.O. Smith’s Lochinvar facility (led by City plant (guided by with consistent innovation, Lean (increasingly automated) operations, and continued demand strength evident at both sites. We came away incrementally confident in NA’s 2H18-2019 operating trajectory (aided by the likely carryover of pricing benefits), also lifting our confidence in sustained HSD core growth through next year. While intrigued by AOS’ solid NA trends (accounting for ~75% of ’18E EBIT) and valuation (fwd P/E ~21x vs. peak ~27x in January), uncertainties regarding the reset of China operations (potential/timing of return to DD growth, related operating leverage) and stock sentiment keep us patient for now.”
According to TipRanks.com, Blair is a 2-star analyst with an average return of 4.9% and a 75.0% success rate. Blair covers the Industrial Goods sector, focusing on stocks such as Lincoln Electric Holdings, Watts Water Technologies, and Carlisle Companies Inc.
AO Smith Corp has an analyst consensus of Strong Buy, with a price target consensus of $71.75.
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AO Smith Corp’s market cap is currently $10.18B and has a P/E ratio of 31.22. The company has a Price to Book ratio of 5.89.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock.
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A. O. Smith Corp. manufactures residential and commercial water heating equipment and air purification products. It operates through the North America and Rest of World segments. The North America segment manufactures and globally markets specialty commercial water heating equipment, condensing and non-condensing boilers, and water systems tanks.
