Jefferies Cuts Price Target on AO Smith (AOS), Tough Market Conditions and Trends
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Price: $63.08 +1.04%
Rating Summary:
11 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
11 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Jefferies is maintaining its Hold rating on shares of AO Smith (NYSE: AOS), but is cutting its price target from $48 to $46 due to tough market conditions.
NA water heaters, which make up 78 percent of the company's total sales, are expected to be flattish. Resi water heaters in China, 20 percent of total sales, are expected to increase 10 percent in 2011.
The CEO, Paul Jones, comments that its recent price increases are are sticking, but notes that the company will be swallowing the rising steel prices. He also stuck with his operating margin goal of 12 percent, but with a flattish North American market, new products not contributing much, and the current margin at 9 percent, the firm remains very skeptic that it will be able to reach it.
The firms 2011 and 2012 EPS estimates are $2.03 and $2.33. Its revenue estimates are $1.58 billion and $1.69 billion.
For more ratings news on AO Smith click here and for the rating history of AO Smith click here.
Shares of AO Smith closed at $39.06 yesterday.
NA water heaters, which make up 78 percent of the company's total sales, are expected to be flattish. Resi water heaters in China, 20 percent of total sales, are expected to increase 10 percent in 2011.
The CEO, Paul Jones, comments that its recent price increases are are sticking, but notes that the company will be swallowing the rising steel prices. He also stuck with his operating margin goal of 12 percent, but with a flattish North American market, new products not contributing much, and the current margin at 9 percent, the firm remains very skeptic that it will be able to reach it.
The firms 2011 and 2012 EPS estimates are $2.03 and $2.33. Its revenue estimates are $1.58 billion and $1.69 billion.
For more ratings news on AO Smith click here and for the rating history of AO Smith click here.
Shares of AO Smith closed at $39.06 yesterday.
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