UPDATE: Piper Jaffray Upgrades AO Smith to Overweight

Piper Jaffray is out with its report today on AO Smith AOS, upgrading AOS from Neutral to Overweight. In a note to clients, Piper Jaffray writes, "We are upgrading shares of AOS from Neutral to OW following the company's acquisition of Lochinvar, a manufacturer of high efficiency water heaters and boilers. We see the transaction as a clear strategic fit with significant globalization opportunities going forward. In keeping with acquisition financial parameters A.O. Smith previously outlined, the company expects Lochinvar provide FY12 earnings accretion of $0.40-$0.50." Piper Jaffray raises its PT on AOS from $47 to $52. Shares of AOS closed Tuesday at $43.15, up 6.89% from Monday's close.