Jefferies ups A.O. Smith target, sees ‘beat-and-raise’ after AHRI data

Jefferies analyst Saree Boroditsky raised the firm’s price target on A.O. Smith to $90 from $85 and keeps a Hold rating on the shares. Air-Conditioning, Heating, and Refrigeration Institute data showed February residential water heater shipments up 9% year-over-year and commercial shipments up 9%, the analyst tells investors in a research note. The firm raised its estimates for A.O. Smith on the back of the strong quarter-to-date shipment performance and now expects its Q1 commercial volumes to be up 7% with the full year up 5%. Jefferies expects A.O. Smith to report a “beat-and-raise” in Q1.