William Blair analyst Ryan Merkel has maintained their bullish stance on AAON stock, giving a Buy rating on February 28.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest a positive outlook for Aaon. Despite a recent pullback in stock price, Merkel sees a buying opportunity as data center growth remains strong and core rooftop bookings have shown significant improvement. The temporary softness in the commercial HVAC rooftop market is attributed to delays in building code updates, and customers are expected to resume purchasing Aaon’s R454B equipment, which offers lower maintenance costs.
Furthermore, Merkel notes that Oklahoma segment sales have shown promising recovery, with double-digit order growth reported. Aaon’s competitive positioning is also highlighted, as their R454B equipment is priced similarly to competitors but offers superior features and a better total cost of ownership. This, combined with potential advantages from Mexico tariffs, supports a favorable outlook for Aaon in 2025.
In another report released on February 28, Robert W. Baird also maintained a Buy rating on the stock with a $116.00 price target.