Watsco now appropriately valued – KeyBanc
Watsco (WSO) now appropriately valued – KeyBanc
WSO
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Watsco (NYSE:WSO) was cut to Sector Weight from Overweight at KeyBanc Capital Markets on Monday without a price target.
The firm’s analysts told investors in a note that their heating, ventilation, and air conditioning (HVAC) checks show a slow start to the summer.
“Following our 2Q channel work, distributors were more cautious on outlooks for the remainder of the year following relatively weak demand through the majority of 2Q,” said the analysts.
“While exceptionally hot weather in the latter half of June has set the stage for accelerating demand into early 3Q, we maintain that the res’l channel remains overstocked,” they added.
Focusing specifically on WSO, the analysts said the stock now better reflects a structurally higher margin profile, and its shares are now appropriately valued at current levels.
WSO shares are down around 1% premarket, trading below the $367 price area.
