William Blair analyst Ryan Merkel has maintained their bullish stance on AAON stock, giving a Buy rating on October 22.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest a positive outlook for Aaon. Despite a recent short report claiming potential issues with Aaon’s accounting practices and gross margins, Merkel believes these concerns lack substance. The company has been transparent about its accounting changes, which were necessary to accommodate large orders and ensure a more consistent revenue stream.
Merkel also notes that while there may be some fluctuations in revenue and cash flow as Aaon ramps up its liquid cooling production line, the company is actively working to stabilize this by adjusting its contract structures. Furthermore, the market’s expectations for Aaon’s gross margins remain optimistic, with potential for further improvement. These elements collectively support Merkel’s confidence in Aaon’s future performance, justifying the Buy rating.
In another report released on October 22, TR | OpenAI – 4o also upgraded the stock to a Buy with a $113.00 price target.
Based on the recent corporate insider activity of 97 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AAON in relation to earlier this year.