• A.O. Smith Corporation (NYSE:AOS) acquires Leonard Valve, enhancing its water management portfolio.
• Jefferies sets a price target of $75 for AOS, indicating a potential increase of 6.53%.
• Despite the strategic acquisition, AOS shares experienced a slight decline.

A.O. Smith Corporation (NYSE:AOS) is a leading manufacturer of water heating and treatment products. The company is known for its innovative solutions in water management, serving both residential and commercial markets. AOS competes with other industry players like Rheem and Bradford White. On January 9, 2026, Jefferies set a price target of $75 for AOS, suggesting a potential price increase of 6.53% from its then-current trading price of $70.40.

A.O. Smith recently expanded its water management portfolio by acquiring Leonard Valve for $470 million. This acquisition, completed in cash, had an adjusted value of approximately $412 million after tax benefits. Leonard Valve is a key provider of digital and thermostatic mixing systems, enhancing AOS's offerings in water temperature control and mixing solutions. This strategic move is expected to strengthen AOS's position in the water heating and boiler control markets.

Despite the strategic acquisition, AOS shares experienced a decline of 2.2%, closing at $67.12 following the announcement. The current price of AOS is $70.16, reflecting a slight decrease of 0.34% or $0.24. During the trading day, the stock fluctuated between a low of $69.54 and a high of $71.68. Over the past year, AOS has seen a high of $77.31 and a low of $58.83.

A.O. Smith's market capitalization is approximately $9.99 billion, with a trading volume of 809,817 shares on the NYSE. The acquisition of Leonard Valve is expected to bolster AOS's digital capabilities, particularly in the commercial sectors like universities, hospitals, and industrial facilities. This move aligns with AOS's strategy to enhance its product offerings and expand its market reach.