Breaking Down A.O. Smith: 5 Analysts Share Their Views

5 analysts have shared their evaluations of A.O. Smith AOS during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated A.O. Smith and provided 12-month price targets. The average target is $76.4, accompanied by a high estimate of $84.00 and a low estimate of $65.00. A decline of 7.06% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

The standing of A.O. Smith among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Nathan Jones |Stifel |Lowers |Buy | $75.00|$84.00 | |Andrew Kaplowitz |Citigroup |Lowers |Neutral | $65.00|$69.00 | |Damian Karas |UBS |Lowers |Neutral | $74.00|$80.00 | |Bryan Blair |Oppenheimer |Lowers |Outperform | $84.00|$88.00 | |Nathan Jones |Stifel |Lowers |Buy | $84.00|$90.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to A.O. Smith. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of A.O. Smith compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of A.O. Smith's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of A.O. Smith's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on A.O. Smith analyst ratings.

Get to Know A.O. Smith Better

A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for Most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

A.O. Smith's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: A.O. Smith's revenue growth over 3M faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -7.66%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.02%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): A.O. Smith's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 5.77%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): A.O. Smith's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.43% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.12.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.