Jefferies Increases Estimates on A.O. Smith (AOS) - PT to $111
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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."
Shares of AO Smith closed at $96.90 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesJefferies & Co, Definitive Agreement
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