Baird analyst Michael Halloran said he suspects there are “elements of truth” in the short report published by J Capital on A.O. Smith, but that those are “being used as a lynchpin to spark/manipulate broader concerns and drive the stock lower.” While parts of the report, such as indications that China demand is sluggish, may have elements of truth, he views the presentation as misleading “and consequently very likely to be inaccurate in its conclusion,” which essentially amounts to accusations of fraud. Hollaran thinks the “overblown” reaction in the stock is a potential buying opportunity and he keeps an Outperform rating and $60 price target on A.O. Smith shares.