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DA Davidson Reaffirms Buy on AAON with $125 Target After Investor Day Update

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DA Davidson reiterated a Buy rating on AAON (NASDAQ:AAON) and maintained its $125 price target, following the company’s recent Investor Day presentation and second-quarter business update, which contributed to a pullback in the stock.

The analysts noted that AAON introduced financial targets through 2027, alongside a Q2 update that initially weighed on shares. However, the firm emphasized that AAON continues to present a disciplined and strategic growth plan, aiming for double-digit growth rates in the coming years. Importantly, the path to these goals appears achievable with relatively modest capital investment beyond 2025.

Although AAON’s valuation premium relative to traditional peers has compressed, the analyst remains constructive, viewing the recent pullback as a buying opportunity supported by solid fundamentals and long-term growth visibility.

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