DA Davidson reiterates Neutral rating on AO Smith stock amid China review

Published 25/07/2025, 16:20
DA Davidson reiterates Neutral rating on AO Smith stock amid China review

Investing.com - DA Davidson has reiterated its Neutral rating and $75.00 price target on AO Smith (NYSE:AOS) following the company’s second-quarter 2025 results. According to InvestingPro data, the stock currently trades at $72.13, with analysis indicating it may be slightly undervalued based on Fair Value calculations.

AO Smith reported $20 million higher revenue and $13 million stronger operating profit than DA Davidson had modeled, with North American performance leading the outperformance, aided by healthy boiler volume. The company maintains strong financials with a current ratio of 1.65 and operates with moderate debt levels, as highlighted by InvestingPro analysis.

The company’s China business continued to show weakness with local currency sales declining by low double digits, though this was partially offset by strong growth in India, where sales increased by approximately 20%.

AO Smith announced it is conducting a formal assessment of its China business, including potential partnerships and other alternatives, which DA Davidson noted could serve as an incremental catalyst for the stock.

The company modestly raised both its sales and earnings per share guidance midpoints for the year, while continuing to utilize its strong balance sheet to repurchase shares.

In other recent news, A.O. Smith Corporation reported impressive financial results for the second quarter of 2025, surpassing Wall Street’s expectations. The company achieved an earnings per share (EPS) of $1.07, exceeding the projected $0.98. Additionally, A.O. Smith reported revenue of $1 billion, slightly above the anticipated $994.93 million. These results highlight the company’s strong performance and have garnered positive attention from investors. Although the company’s stock movement was noted, it is the financial achievements that stand out. The earnings and revenue figures are crucial indicators of A.O. Smith’s current financial health and market position. These developments are part of the recent updates surrounding the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.