UBS analyst Damian Karas upgraded A.O. Smith (AOS) to Neutral from Sell with a price target of $80, up from $75. With the stock down 27% year-to-date, the firm sees a more balanced risk/reward, with the recent guidance cut “having adequately lowered investor expectations for China.” The shares are assigning little value to the rest-of-world business, where UBS is now incrementally positive on China government stimulus, notwithstanding a still challenging consumer and housing market backdrop, the analyst tells investors in a research note.
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Read More on AOS:
- A.O. Smith reports Q3 EPS 82c, consensus 83c
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- Oppenheimer cuts A.O. Smith estimates on persistent China weakness
- A.O. Smith price target lowered to $80 from $92 at Baird
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