Aaon selloff on three-year targets an overreaction, says William Blair

William Blair says Aaon (AAON) shares are down after the company’s three-year targets for revenue up 12.5% and gross margin of 32%-35% were below expectations. The firm views today’s selloff as an overreaction, saying Aaon’s revenue is impacted by a weak rooftop market in 2025. High-single-digit growth long term is still the goal, the analyst tells investors in a research note. Blair believes conservatism is built in by management for slow rooftop market in 2025 and ramp-up of Memphis facility. The firm has an Outperform rating on Aaon.