A.O. Smith price target lowered to $92 from $98 at Stifel

Stifel lowered the firm’s price target on A.O. Smith to $92 from $98 and keeps a Buy rating on the shares after the company announces preliminary Q3 results and provided revised FY24 guidance. The firm noted that continued consumer weakness in China saw constant currency sales to third parties down 17% year-over-year, with management now expecting continued weakness in China to persist through the remainder of 2024. Meanwhile, North America water heater orders were also reported to be weaker-than-expected, with management pointing to larger than expected price increase-related pre-buy activity in 1H24 impacting the quarter, the analyst tells investors in a research note.