Analysts have raised their price target for A. O. Smith slightly, increasing it from $78.18 to $78.50. This change reflects modest adjustments to growth and profitability forecasts.
What's in the News
- A. O. Smith has hired Chris Howe as senior vice president and chief digital information officer. He will lead digital transformation and AI initiatives (Periodical).
- The company updated its 2025 earning guidance and now expects net sales of $3,800 million to $3,850 million and diluted EPS of $3.70 to $3.85 (Key Developments).
- The board approved a 6% increase in the quarterly cash dividend rate to $0.36 per share. This will be payable on November 17 to shareholders of record on October 31, 2025 (Key Developments).
- A. O. Smith has repurchased 1,190,304 shares for $84.07 million from July to September 2025 as part of its ongoing buyback program (Key Developments).
- The company is actively seeking strategic acquisitions to strengthen its core business or build new growth platforms (Key Developments).
Valuation Changes
- Fair Value Estimate has increased slightly from $78.18 to $78.50.
- Discount Rate has risen moderately, moving from 8.10% to 8.32%.
- Revenue Growth Projection has edged down, now at 3.49%, compared to the previous 3.54%.
- Net Profit Margin is nearly unchanged, slipping from 14.83% to 14.81%.
- Future P/E Ratio has increased slightly, moving from 19.27x to 19.53x.
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