A.O. Smith downgraded to Sell from Neutral at UBS

UBS analyst Damian Karas downgraded A.O. Smith to Sell from Neutral with a price target of $58, down from $65. Karas expects subdued growth and thinks rising competitive risks this year will result in a lower valuation, the analyst tells investors in a research note. Additionally, the analyst says the China business will face challenges from weaker property development and inflationary pressures on consumers, which could negatively impact A.O. Smith’s premium brand position.