Water heater maker A. O. Smith Corporation (
) on Monday saw its price target and earnings estimates lowered by
analysts at Wedbush Securities.
The firm maintained its "Outperform" rating on AOS but cut its
price target from $49 to $46. That new target suggests a smaller
34% upside to the stock's Friday closing price of $34.23.
A Wedbush analyst commented, "Though the September 14 's AHRI's
release of July water heater shipment data was clearly
disappointing, recent checks indicate the decline appears to have
been much less severe in August than July while comparisons also
improve in September. Given these weaker numbers, offset by the
earlier than expected closure on Lochinvar, we are reducing our Q3
and 2011 EPS estimate to $0.46 from $0.48 and to $2.13 from $2.15,
respectively. Our 2012 EPS is now $2.98, down from $2.99."
A. O. Smith shares were unchanged in premarket trading
The Bottom Line
Shares of A.O. Smith (
) have a 1.87% dividend yield, based on Friday's closing stock
price of $34.23. The stock has technical support in the $30 price
area. If the shares can firm up, we see overhead resistance around
the $38 price level.
A. O. Smith Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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