AAON Poised for 'Significant' Operating Leverage Amid Data Center Growth, Oppenheimer Says

MT Newswires Live
Sep 30

AAON (AAON) is likely to generate "significant" operating leverage as it doubles its data center footprint and implements growth strategies through 2027, Oppenheimer said in a note Tuesday.

The company is ahead of its competitors in research and development reinvestment, with its engineering strategy, semi-customization production process, and go-to-market approach bringing about high product performance and premium pricing, analysts led by Noah Kaye wrote.

AAON is likely to retain its competitive edge in product development, semi-custom production, and energy efficiency performance within the light commercial HVAC industry, the analysts said.

AAON-branded sales "should rebound" faster than its peers in the next 12 to 18 months, the firm added.

Oppenheimer has an outperform rating with a $105 price target on AAON.

Shares of the company were up 2.6% in recent Tuesday trading.

Price: 93.84, Change: +2.35, Percent Change: +2.56

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