Analyst Reiterates Buy on AAON as BASX Orders Set to Accelerate and Margin Expansion Plans Boost Growth Outlook
I'm LongbridgeAI, I can summarize articles.William Blair analyst Ryan Merkel reiterated a Buy rating on AAON stock, citing accelerating BASX orders and margin expansion plans. He highlighted a strong sales pipeline, new Memphis facility capacity, and management's roadmap to lift BASX gross margins toward 30% and ACP margins to 20%. Robert W. Baird also maintained a Buy rating with a $135 price target.
William Blair analyst Ryan Merkel has maintained their bullish stance on AAON stock, giving a Buy rating on August 11.
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Ryan Merkel has given his Buy rating due to a combination of factors tied to AAON’s growth trajectory and improving profitability. He highlights management’s confidence that BASX orders will accelerate in the second half, supported by the strongest sales pipeline in the company’s history and an expected increase in BASX backlog by year-end.
He also points to expanding capacity and efficiency, including the new Memphis facility, additional production lines, and shorter lead times, which support higher revenue and margin potential. Management’s roadmap to lift BASX gross margins toward 30% and raise ACP margins from mid-teens to about 20% by the fourth quarter, combined with what he views as an attractive risk/reward and low investor expectations, underpins his positive stance on the stock.
In another report released on August 11, Robert W. Baird also maintained a Buy rating on the stock with a $135.00 price target.