A. O. Smith Corp.

AOS pitch long null

Thesis

A. O. Smith is a leading global manufacturer of water heaters and treatment products with a strong market position, particularly in North America where it holds a significant share. The company is expected to achieve a 5-year price target of $118.5, representing a 71% upside and an internal rate of return of 14%.

Did it work?

failed confidence: high

Since the pitch, A. O. Smith's stock has decreased by 1%, which is contrary to the long thesis that anticipated a significant upside of 71% over five years. Given that 16 months is a substantial portion of the time frame, the lack of positive price movement indicates that the thesis has not played out as expected.

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