Jefferies sees risk to A.O. Smith as Lennox enters NA water heater market

Jefferies sees Lennox’s (LII) entrance into the North America water heater market with the newly announced Ariston partnership as a potential risk to A.O. Smith (AOS). This combination will leverage Lennox’s solid distribution network, which the firm believes was one of the barriers to entry for GE/Haier. In afternoon trading, shares of A.O. Smith have dropped over 7% to $63.69.