A. O. Smith (NYSE:AOS) Price Target Cut to $64.00 by Analysts at Citigroup

A. O. Smith (NYSE:AOS) had its target price cut by equities researchers at Citigroup from $65.00 to $64.00 in a research report issued on Friday,Benzinga reports. The firm currently has a “neutral” rating on the industrial products company’s stock. Citigroup’s price target suggests a potential upside of 6.12% from the stock’s previous close.

A number of other equities analysts have also commented on the stock. DA Davidson set a $67.00 price target on shares of A. O. Smith and gave the stock a “neutral” rating in a report on Monday, May 4th. Oppenheimer set a $75.00 price objective on shares of A. O. Smith and gave the stock an “outperform” rating in a report on Wednesday, June 10th. Weiss Ratings lowered shares of A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 27th. Zacks Research cut A. O. Smith from a “hold” rating to a “strong sell” rating in a research note on Wednesday, May 6th. Finally, JPMorgan Chase & Co. restated an “underweight” rating and set a $60.00 price target (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, A. O. Smith currently has an average rating of “Reduce” and an average target price of $67.75.

A. O. Smith Stock Performance

A. O. Smith stock traded up $0.50 during mid-day trading on Friday, reaching $60.31. The company’s stock had a trading volume of 1,189,858 shares, compared to its average volume of 1,606,040. The firm’s fifty day moving average price is $59.50 and its two-hundred day moving average price is $65.43. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. A. O. Smith has a 12-month low of $54.16 and a 12-month high of $81.86. The company has a market capitalization of $8.31 billion, a P/E ratio of 16.04, a PEG ratio of 1.38 and a beta of 1.16.

A. O. Smith (NYSE:AOS) last announced its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.07. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The firm had revenue of $1 billion for the quarter, compared to the consensus estimate of $994.89 million. During the same period in the prior year, the firm posted $1.07 earnings per share. The company’s revenue for the quarter was down .7% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. Sell-side analysts predict that A. O. Smith will post 3.74 EPS for the current fiscal year.

Hedge Funds Weigh In On A. O. Smith

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in A. O. Smith in the fourth quarter worth $97,101,000. Madison Asset Management LLC purchased a new position in shares of A. O. Smith in the 4th quarter worth about $80,885,000. Natixis Advisors LLC raised its position in shares of A. O. Smith by 220.4% in the 4th quarter. Natixis Advisors LLC now owns 1,022,299 shares of the industrial products company’s stock worth $68,371,000 after purchasing an additional 703,186 shares during the last quarter. Vanguard Group Inc. boosted its stake in A. O. Smith by 4.7% in the 4th quarter. Vanguard Group Inc. now owns 15,096,018 shares of the industrial products company’s stock worth $1,009,622,000 after purchasing an additional 683,176 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in A. O. Smith by 93.2% in the 4th quarter. AQR Capital Management LLC now owns 1,279,356 shares of the industrial products company’s stock worth $85,563,000 after purchasing an additional 617,179 shares in the last quarter. Institutional investors own 76.10% of the company’s stock.

More A. O. Smith News

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported $1.03 in adjusted EPS versus the $0.96 consensus estimate, while sales of approximately $1.0 billion topped forecasts of $994.9 million. However, adjusted EPS declined from $1.07 a year earlier and revenue fell 0.7% year over year. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: North American operations remained a key growth driver. Segment sales increased 5% to $820.5 million, supported by 21% boiler-sales growth, pricing actions and the Leonard Valve acquisition. Management also highlighted a 42% year-to-date increase in operating cash flow and a 67% rise in free cash flow to $233 million. A.O. Smith Q2 2026 Earnings Call Highlights
• Positive Sentiment: Share repurchase plans were increased. A. O. Smith raised its 2026 share-repurchase target to $300 million, potentially providing additional support for per-share results. The company also declared a quarterly dividend of $0.36 per share. A. O. Smith Declares Dividend
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. The company expects 2026 sales growth of 2% to 3%, adjusted EPS of $3.70 to $3.85 and revenue of about $3.9 billion, compared with analyst expectations of $3.77 adjusted EPS and $3.9 billion in revenue. A.O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and cost pressures remain concerns. Rest-of-world sales fell 19% to $194.9 million, primarily because of continued weakness in China’s consumer-appliance market. Higher input costs and lower residential water-heater volumes also pressured profitability.
• Negative Sentiment: Stifel reduced its price target from $76 to $70, although it retained a Buy rating. The revised target still implies approximately 16% potential upside from the referenced share price, but the cut signals more cautious near-term expectations. Stifel Price Target Update

A. O. Smith Company Profile

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.