Intel stock spikes after report of possible US government stake
Investing.com - William Blair has reiterated an Outperform rating on AAON Inc (NASDAQ:AAON), viewing recent weakness as a buying opportunity despite temporary ERP system implementation challenges. The stock has declined over 34% in the past six months, according to InvestingPro data, while maintaining strong fundamentals with a current ratio of 2.77x.
The research firm believes the recent earnings miss and guidance cut represent a "clearing event" and that AAON’s long-term outlook remains intact, suggesting the revised guidance includes a cushion for lingering ERP issues.
William Blair notes that production has improved since April as the ERP system has stabilized, while the company maintains a substantial $1.1 billion backlog, with AAON-branded orders showing particular strength, up 93% year-over-year.
The firm highlights that BASX-branded products achieved a book-to-bill ratio of 1 times, constrained only by capacity limitations, and suggests that an order from Applied Digital could prove meaningful for future results.
Looking ahead, William Blair reports that AAON expects low-double digit revenue growth in 2026 with gross margins improving toward 31%-32%, and suggests the stock could potentially return to $100 by year-end if the company begins exceeding analyst estimates.
In other recent news, AAON Inc. reported its financial results for the second quarter of 2025, which fell short of expectations. The company announced earnings per share of $0.22, missing the projected $0.34, representing a 35.29% shortfall. Revenue was reported at $311.6 million, also below the expected $326.15 million, marking a 4.47% deficit. The underperformance was linked to challenges with the implementation of a new ERP system at its Longview facility. In related developments, DA Davidson adjusted its price target for AAON Inc. to $105 from $125, though it maintained a Buy rating on the stock. The firm pointed to internal inefficiencies and facility challenges as reasons for the revised guidance. Despite these issues, DA Davidson expressed optimism about AAON’s potential for long-term growth.
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