Goldman Sachs analyst Susan Maklari raised the firm’s price target on A.O. Smith (AOS) to $65 from $61 and keeps a Sell rating on the shares. The firm says its expectation for greater volatility in A.O. Smith’s near-term results, including pressure on second half margins as steel costs rise, leaves it cautious on the stock. On the call, management highlighted pull forward in demand following an announced 6%-9% price increase in early May on residential and commercial water heaters in response to tariffs. Although the impact was slightly muted vs last year given better order management efforts, demand has moderated into the summer as customers work through inventories, Goldman adds.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AOS:
- Challenging Outlook for A. O. Smith Corporation Amid Rising Costs and Strategic Uncertainty
- A.O. Smith price target raised to $76 from $74 at UBS
- A.O. Smith price target raised to $88 from $82 at Oppenheimer
- A.O. Smith price target raised to $89 from $81 at Stifel
- A.O. Smith price target raised to $82 from $76 at Baird