UPDATE: Wedbush Securities Downgrades A.O. Smith On Valuation And Limited Upside

In a report published Wednesday, Wedbush Securities analyst David L. Rose downgraded the rating on

from Outperform to Neutral, but raised the price target from $57.00 to $58.00. In the report, Wedbush Securities noted, “Our downgrade is a function of valuation and limited upside. Given the impressive move in the shares relative to the broader indices, we are downgrading AOS shares to NEUTRAL as we believe the valuation is full. Though we believe fundamentals remain intact, we believe much of the upside is built into the share price, with shares already gaining ~28% since April 2014 compared to ~8% for S&P Midcap. In our view, the risk/reward is evenly balanced.” A.O. Smith closed on Tuesday at $59.73.