A.O. Smith downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Tomohiko Sano downgraded A.O. Smith (AOS) to Underweight from Neutral with a price target of $60, down from $65. The firm is more cautious on the shares given the company’s China and residential exposure. The downgrade reflects A.O. Smith’s lowered guidance, its meaningful residential exposure, and a China outlook that has shifted from an anticipated second half of 2026 recovery to a 15% sequential decline in Q2, the analyst tells investors in a research note.