UPDATE: Sterne Agee Downgrades AO Smith Corporation to Neutral Following Share Price Appreciation

Sterne Agee downgraded its rating on AO Smith Corporation AOS from Buy to Neutral as shares have approached the price target of $55. Sterne Agee commented, "A.O. Smith's stock is up 30% YTD (vs. a 9% increase in the S&P 500) and is within $3 of our prior $55 target, which was derived using 14x our FY2013 EPS estimate (in line with the company's long-term average) and then adding the ~$10/share in cash on the balance sheet. As we are not changing estimates, we are loath to raise our target, and thus believe the stock is more or less fully valued at the current level." AO Smith Corporation closed at $52.09 on Wednesday.