Sterne Agee Reiterates Neutral Rating on A.O. Smith Corporation Ahead of 2Q Results

In a report published Tuesday, Sterne Agee analyst Todd Vencil reiterated a Neutral rating on A.O. Smith Corporation AOS. In the report, Sterne Agee noted, “We think AOS probably needs to beat and raise again – and put up good numbers for the China operation – when it reports results on Wednesday in order for the stock to maintain its recent momentum...We expect another good quarter from AOS as strength in the U.S. housing market has continued (completions were up 13% YOY in 2Q) and April data (the most recent available) from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) showed commercial shipments of water heaters increased 16% YOY. Given the headline risk, we think AOS results in China will be a key item in Wednesday's release.” A.O. Smith Corporation closed on Monday at $40.10.