UPDATE: Sterne Agee Raises A.O. Smith's PT

According to a research report published this morning, Sterne Agee has increased A.O. Smith's

PT from $48 to $55. In the report, Sterne Agee commented, "AOS's results in North America have been buoyed by the sizeable replacement market for both residential and commercial water heaters. The company continues to expect demand from new construction will remain flat in 2012 (AOS will lag new starts by 6-9mos) and we are modeling no volume growth in the U.S. for the company's legacy water heater business this year, and only minimal growth in 2013." Sterne Agee maintains its Buy rating on A.O. Smith, which closed Friday at $47.18.