Stifel downgraded A. O. Smith from Buy to Hold and lowered its price target to $59 due to rising steel costs, higher interest rates, weak demand, and uncertainty in China. Despite these challenges, A. O. Smith expects 2026 sales to grow 2%-3%, driven by boilers, water treatment, and Leonard Valve acquisitions. The company raised its quarterly dividend by 6% and increased its share repurchase target to $300 million, supported by strong cash flow. However, China sales are expected to decline, and long-term debt rose due to the Leonard Valve acquisition financing.
A. O. Smith shares are trading near the lowered price target mentioned by Stifel, at USD 58.02 on Pluang. The stock is down 2.02% for the day, with a dividend yield of 2.57% as of Oct 19, 2026 20:52 WIB.
