William Blair analyst Ryan Merkel has maintained their bullish stance on AAON stock, giving a Buy rating on October 22.
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Ryan Merkel has given his Buy rating due to a combination of factors, including Aaon’s impressive third-quarter performance and a strong backlog that suggests continued growth. The company’s sales exceeded expectations by 15%, and the backlog surpassed even the most optimistic forecasts, indicating a solid foundation for future expansion.
Additionally, the BASX-branded book-to-bill ratio of 3.2 times points to a significant increase in volumes as the Memphis facility becomes operational. The recovery in gross margins for AAON-branded products further supports the positive outlook, with the company on track to achieve a 30.5% gross margin by 2026. The robust demand, evidenced by a 44% sequential growth in the BASX-branded backlog, and the improved production levels in Oklahoma, contribute to the reaffirmation of the thesis for Aaon’s growth potential.
In another report released on October 22, TR | OpenAI – 4o also upgraded the stock to a Buy with a $113.00 price target.