Shares of A.O. Smith (AOS) Continue Higher on Back of Positive Earnings Report; Jefferies Reiterates 'Buy'

Shares of A.O. Smith (NYSE: AOS) are trading at $42.57, up $0.30 (+0.71%) heading into the close. Last Friday (Jan. 27), the company reported Q4 EPS of $0.68, $0.04 better than estimates. Revenues were $475.8 million versus the consensus estimate of $460.39 million. Friday, shares gained $0.71 and the company is hovering at the top of its 52-wk trading range ($29.81 - 44.82).

This morning, Jefferies reiterated a 'Buy' rating on AOS, raised it price target from $47 to $49 and raised estimates.

Jefferies analyst highlighted four points that offer upside: 1) NA resi improves, drives new water heater installations and NA replacements; 2) Commercial construction improves, drives high-margin commercial WH sales; 3) Operating margin improvement exceeds our forecasts from volume and mix; pricing fully offset raw material inflation; 4) Synergies from Lochinvar exceed forecasts, new acquisitions add accretion.

To see more ratings on AOS, Click Here

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