A.O. Smith price target raised to $75 from $73 at UBS

UBS raised the firm’s price target on A.O. Smith to $75 from $73 and keeps a Sell rating on the shares. China water heater data for May showed domestic shipments were flat year over year, bringing combined April and May shipments to down 3%, the analyst tells investors in a research note. The Chinese market remains choppy and near-term growth is likely to remain sluggish, the firm says, adding that while management has continued to speak to a gradual recovery in China, UBS thinks the early cut to China sales guidance in Q1 indicates lowered confidence in demand for the rest of the year.