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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.
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