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An announcement from A. O. Smith Corporation ( (AOS) ) is now available.
On January 5, 2026, A. O. Smith Corporation entered into a new unsecured credit agreement providing a $470 million term loan maturing in 2029, with variable-rate pricing tied to SOFR or a base rate and covenants that cap leverage and require minimum interest coverage, giving lenders remedies in the event of default. The company drew the full amount on January 5, 2026 and used the proceeds to finance the $470 million all‑cash acquisition of LVC Holdco LLC, known as Leonard Valve, which it completed on January 6, 2026, a deal valued at about $412 million after estimated tax benefits and expected to broaden A. O. Smith’s presence in commercial and institutional water management by adding Leonard Valve’s thermostatic and digital mixing valves, temperature control solutions and Heat‑Timer boiler controls to its integrated product offering.
The most recent analyst rating on (AOS) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on A. O. Smith Corporation stock, see the AOS Stock Forecast page.
Spark’s Take on AOS Stock
According to Spark, TipRanks’ AI Analyst, AOS is a Outperform.
A. O. Smith Corporation scores well due to its strong financial performance, highlighted by consistent profitability and robust cash management. The technical analysis suggests neutral momentum, while the valuation is fair with a solid dividend yield. The earnings call presented a mixed outlook with strong North American performance but challenges in China. The recent acquisition of Leonard Valve is a positive strategic move, expected to enhance future growth.
To see Spark’s full report on AOS stock, click here.
More about A. O. Smith Corporation
A. O. Smith Corporation, headquartered in Milwaukee, Wisconsin and listed on the NYSE under the ticker AOS, is a global water technology company and one of the world’s leading manufacturers of residential and commercial water heating equipment and boilers, as well as water treatment products. The company focuses on applying innovative and energy‑efficient technologies to water heating, treatment and broader water management solutions for customers worldwide.
Average Trading Volume: 1,287,862
Technical Sentiment Signal: Hold
Current Market Cap: $9.54B
See more data about AOS stock on TipRanks’ Stock Analysis page.