Aaon assumed with an Outperform at Oppenheimer

Oppenheimer analyst Noah Kaye assumed coverage of Aaon (AAON) with an Outperform rating and $105 price target The firm views Aaon as a differentiated innovator in the HVAC and data center thermal management sectors, with core competencies in flexible, solutions-based manufacturing, advanced R&D, and product quality and efficiency. Near term, Oppenheimer anticipates lapping operational changes and non-res market weakness to support improving results. Longer term, as the company doubles its data center footprint and executes on transformational growth initiatives in FY25-27, the firm sees it generating significant operating leverage with FY27 margins in the upper tier of our HVAC, Power and Industrial Efficiency coverage.