Stifel has revised its price target for A.O. Smith (AOS, Financial), reducing it from $84 to $75, while maintaining a Buy rating on the stock. This adjustment reflects the firm's anticipation of a slight industrial recession in the United States, projected to occur from the latter part of 2025 through the first half of 2026.
The decision to lower the price target also takes into account the economic situation in China, which Stifel identifies as a significant risk factor for A.O. Smith's performance. The firm's outlook suggests that challenges in the Chinese economy could have substantial impacts on the company's growth prospects.
Despite these challenges, Stifel's continued Buy rating indicates a belief in the company's potential for recovery and long-term success, albeit at a more conservative valuation than previously estimated.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for A.O. Smith Corp (AOS, Financial) is $74.19 with a high estimate of $84.00 and a low estimate of $56.00. The average target implies an upside of 16.20% from the current price of $63.85. More detailed estimate data can be found on the A.O. Smith Corp (AOS) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, A.O. Smith Corp's (AOS, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for A.O. Smith Corp (AOS, Financial) in one year is $76.35, suggesting a upside of 19.58% from the current price of $63.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the A.O. Smith Corp (AOS) Summary page.
