William Blair analyst Ryan Merkel has maintained their bullish stance on AAON stock, giving a Buy rating on February 28.
Ryan Merkel has given his Buy rating due to a combination of factors observed during a recent visit to Aaon’s Longview, Texas, manufacturing plant. The facility’s scale and automation impressed him, particularly in the context of assembling CDUs for a significant $200 million order from a hyperscaler. These CDUs are tailored to meet specific customer needs, including supporting substantial power loads within a compact design.
Moreover, Merkel noted that the outlook for data centers remains strong, with innovations like DeepSeek potentially expanding the market for inference models. He also mentioned that Aaon’s 2025 guidance appears conservative, suggesting potential for higher performance. Additionally, the company’s competitive pricing for its R454B equipment and the new capacity could lead to an increased conversion of data center backlogs.
In another report released on February 28, Robert W. Baird also maintained a Buy rating on the stock with a $116.00 price target.
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