Jefferies Increases Estimates on A.O. Smith (AOS) - PT to $111

September 23, 2016 7:15 AM EDT
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Price: $48.09 -0.76%

Rating Summary:
    14 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Jefferies reiterated a Buy rating on AO Smith (NYSE: AOS), and raised the price target to $111.00 (from $86.00), following the company's Aquasana acquisition. Jefferies' 2016 NA margin estimate is 22.4%, which is slightly above the guide range of 21.5%-22.0% and the prior estimate of 20.4%.

Analyst Bhupender Bohra commented, "We're increasing our estimates and target on higher conviction on NA margin and accretion from Aquasana acquisition. The July NA AHRI shipment of +10% and successful 5%-8% price increase effective August, both indicate a good start to 2H16. Aquasana provides bolt-on M&A opportunity, and supports AOS LT growth strategy of 8%. Our 2017 and new 2018 estimates are 4% and 6% above consensus estimates."

For an analyst ratings summary and ratings history on AO Smith click here. For more ratings news on AO Smith click here.

Shares of AO Smith closed at $96.90 yesterday.

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