Stifel Nicolaus analyst Nathan Jones maintained a Buy rating on A. O. Smith Corporation on February 13 and set a price target of $85.00.
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Nathan Jones has given his Buy rating due to a combination of factors tied to strengthening end-market indicators for A. O. Smith. December AHRI data show a sharp rebound in U.S. residential water heater shipments, with both gas and electric units experiencing strong month-over-month and year-over-year gains, which supports a positive volume backdrop for the company’s North American business.
He also notes that total residential and commercial water heater shipments rose significantly on both a unit and an inflation-adjusted revenue basis, reinforcing the view that underlying demand is improving rather than just pricing. Given the historical statistical relationship between AHRI shipment-derived revenue trends and A. O. Smith’s organic growth in North America, these data points underpin confidence in the firm’s revenue outlook and support maintaining a constructive stance on the stock.
Jones covers the Industrials sector, focusing on stocks such as Parker Hannifin, Lincoln Electric Holdings, and ITT. According to TipRanks, Jones has an average return of 24.2% and a 76.75% success rate on recommended stocks.
In another report released on January 30, TipRanks – xAI also reiterated a Buy rating on the stock with a $83.00 price target.