AO Smith stock rating reiterated as Buy by Stifel, price target at $89

Published 11/08/2025, 13:14
AO Smith stock rating reiterated as Buy by Stifel, price target at $89

Investing.com - Stifel has reiterated its Buy rating on AO Smith (NYSE:AOS) with a price target of $89.00, according to a research note released Monday. The target represents a potential 26% upside from the current price of $70.83, aligning with InvestingPro’s analysis indicating the stock is currently undervalued.

The water technology company’s rating remains unchanged from Stifel’s previous assessment, with analyst Nathan Jones maintaining his positive outlook on the stock.

The $89.00 price target suggests potential upside for AO Smith shares from their current trading levels.

AO Smith, headquartered in Milwaukee, Wisconsin, specializes in water heating equipment and water treatment products for residential and commercial applications.

The company operates globally with significant presence in North America, China, India, and Europe, serving both consumer and industrial markets with its water technology solutions.

In other recent news, A.O. Smith Corporation reported impressive second-quarter 2025 financial results, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.07, exceeding the forecasted $0.98, and reported revenue of $1 billion, slightly above the anticipated $994.93 million. UBS has raised its price target for A.O. Smith to $76, citing conservative guidance, although it maintained a Neutral rating. The firm highlighted that while incremental costs from steel and tariffs are expected to pressure margins in late 2024, pricing and higher volumes should support margin expansion year-over-year. DA Davidson has also reiterated its Neutral rating with a $75 price target, noting stable demand across North American and global segments. The company’s North American performance was particularly strong, driven by healthy boiler demand and stable water heater volumes. DA Davidson’s analysis revealed that A.O. Smith’s revenue and operating profit exceeded their models by $20 million and $13 million, respectively. These developments reflect a positive outlook for A.O. Smith, as indicated by the recent earnings call and analyst assessments.

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