Jefferies maintained a Buy rating on AO Smith (NYSE: AOS), and cut the price target to $86.00 (from $90.00), following the company's 4Q earnings report. Coming into 4Q15, market implied China consumer spending was slowing down. But core sales growth of 19% y/y defied this belief (FX was -5%). The China retail household appliance and video equipment datapoint Jefferies track also showed 4Q average growth of 13% y/y.

Analyst Bhupender Bohra commented, "AOS beat 4Q on better NA margin and a one-time tax benefit. 2016 has started on a better note with NA Lochinvar and China shipments in January in line with its long term goal. Our double-digit earnings growth estimate in 2016 and 2017 is built on solid top-line growth and a modest margin expansion. AOS remains one of our top picks."

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 $69.85 yesterday.