UBS Maintains a 'Neutral' on Watsco (WSO); Making Post-2Q Cuts to EPS, Target Price

UBS maintains a 'Neutral' on Watsco (NYSE: WSO), price target lowered from $65 to $54.

UBS analyst says, "Take on 2Q: fell short on the top line but pricing boosted margins: Sales in 2Q were 6% below our estimates but gross margins were 65bp ahead and EBIT margins missed by only 13bp. We think WSO benefited from pricing, likely augmented by lower priced inventory it acquired ahead of OEM price hikes, along with good discipline on overhead costs, which were flat on a same-store basis. Mix appeared to be a headwind of 3-4%, which we think continues."

For more ratings news on Watsco click here and for the rating history of Watsco click here.

Shares of Watsco closed at $52.85 yesterday.

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