UPDATE: Stifel Starts AO Smith (AOS) at Buy

April 2, 2020 4:13 PM EDT
Get Alerts AOS Hot Sheet
Price: $69.76 -0.07%

Rating Summary:
    11 Buy, 19 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 26 | New: 41
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(Updated - April 3, 2020 7:58 AM EDT)

(updated to add analyst comments)

Stifel analyst Nathan Jones initiates coverage on AO Smith (NYSE: AOS) with a Buy rating and a price target of $45.00.

The analyst commented:

  • Markets have secular growth as the domestic installed base increases, which grows the replacement business, and accounts for approximately 80% of total domestic revenue.
  • The domestic market structure is favorable with 3 companies (A. O. Smith, Rheem, and Bradford White) controlling 90%+ of the market, which leads to rational competition.
  • The vast majority of the domestic business is sold through wholesale and retail distribution where suppliers have exclusive relationships with distributors that rarely change. We think this insulates the business from new entrants in the majority of A. O. Smith's businesses as new competitors lack significant channels to market.

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 $35.61 yesterday.

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