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AOS: Digital Transformation Initiatives Will Unlock Next Phase Of Shareholder Value

AOS: Digital Leadership Will Drive Long-Term Expansion And Shareholder Value

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AOS
AnalystConsensusTarget
Not Invested
Published 22 Aug 2024

Update shared on 30 Nov 2025

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AnalystConsensusTarget's Fair Value
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1Y
-5.6%
7D
2.1%

Analysts have slightly raised their price target for A. O. Smith to $78.50, citing small adjustments in discount rate and future price-to-earnings expectations while maintaining their overall outlook on the company's performance.

What's in the News

  • A. O. Smith has appointed Chris Howe as senior vice president and chief digital information officer. This signals a renewed focus on digital transformation and emerging technologies. (Periodical)
  • The company is actively seeking acquisitions to strengthen its core business and pursue new growth opportunities. (Key Developments)
  • A. O. Smith completed a significant share buyback, repurchasing over 1.19 million shares in the recent quarter. This brings total repurchases to more than 35% since 2007. (Key Developments)
  • Updated earnings guidance for 2025 forecasts net sales of $3.8 to $3.85 billion and diluted EPS in the range of $3.70 to $3.85. (Key Developments)
  • The board approved a 6% increase in quarterly cash dividends, raising the payout to $0.36 per share. (Key Developments)

Valuation Changes

  • Fair Value: Remains unchanged at $78.50 per share.
  • Discount Rate: Risen slightly from 8.32% to 8.33%.
  • Revenue Growth: Holds steady with a minimal adjustment to 3.49%.
  • Net Profit Margin: Remains virtually unchanged at approximately 14.81%.
  • Future P/E: Increased modestly from 19.53x to 19.84x.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.