** Stifel cuts PT on water heater maker A. O. Smith AOS.N to $75 from $84; maintains 'buy' rating

** Brokerage says it is assuming U.S. trade policy will lead to a "modest industrial recession" in second half of the year through first half of 2026

** Says a weaker China economy biggest risk for AOS with high, largely non-discretionary, replacement revenue in the U.S. and a price-insensitive customer

** AOS to report Q1 results on April 29

** "We see limited impact to the business" - Stifel

** 5 of 15 brokerages rate the stock "buy" or higher, 9 "hold" and one "sell"; their median PT is $75 - LSEG data

** As of last close, stock down 6.4% YTD

(Reporting by Anshuman Tripathy)

((Anshuman.Tripathy@thomsonreuters.com))