
AOS Stock Forecast & Price Target
AOS Analyst Ratings
Bulls say
A.O. Smith has demonstrated robust financial growth, with sales in India increasing by 11% in local currency and anticipated legacy India revenue growth in the mid-teens, indicating strong performance in international markets. The company's return on invested capital (ROIC) has seen a remarkable improvement from 3.7% in 2010 to 21.7% in 2024, surpassing the long-term cost of capital of 9%-10%, which underscores its operational efficiency and profitability. Additionally, the company is poised for sustained growth through strategic product development, margin expansion efforts, and the ramp-up of its Mexico tankless capacity, further enhancing its outlook in the water heating sector.
Bears say
A.O. Smith experienced a year-over-year sales decline of 6.5% in 4Q23, driven primarily by reduced water heater volumes in North America, which constitutes 75% of the company's sales. The company's international segment also faced challenges, notably in China, where sales fell by 9.1% due to weak consumer demand, overshadowing positive growth in India. Furthermore, conservative earnings guidance for 2025/26 indicates continued pressure on profitability, leading to a decrease in projected EPS estimates.
This aggregate rating is based on analysts' research of A. O. Smith and is not a guaranteed prediction by Public.com or investment advice.
AOS Analyst Forecast & Price Prediction
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