A.O. Smith downgraded to Neutral at DA Davidson on lack of near-term catalyst

As previously reported, DA Davidson downgraded A.O. Smith (AOS) to Neutral from Buy with an $80 price target following the company’s Q3 results. The firm, which is lowering its 2024 view to be in-line with guidance, while reducing its 2025 forecast below the low-end of Street views, believes the company’s growth and profitability targets for China are “looking increasingly unattainable,” and thinks multiple expansion may prove elusive absent material M&A or another estimate catalyst, the analyst tells investors.