UBS Maintains a 'Neutral' on Watsco (WSO); Q2 Miss Raises Red Flags
Tweet Send to a FriendGet Alerts WSO Hot Sheet
Price: $87.77 -0.65%
Rating Summary:
3 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
3 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade WSO Now!
UBS maintains a 'Neutral' on Watsco (NYSE: WSO) price target of $69.00 (from $82.00).
Analyst, Robert Barry, said, "The trade-off between selling fewer parts but more equipment looks less beneficial post 2Q; We estimate parts rev fell 8-9% as equipment grew 5% vs. an easy comp. Lack of supplies growth was disappointing, and puzzling, casting doubt on how much WSO benefits in a housing recovery and reducing our expectations around upside/timing of upside from Carrier JVs selling more supplies. Operational issues in the new Canada JV are concerning, more so because they’re happening right out of the gate post the deal closing. Such concerns drive our target multiple down."
UBS cuts FY estimates on weak Q2 performance including: FY12 from $3.53 to $3.18 and FY13 from $4.17 to $3.85.
For an analyst ratings summary and ratings history on Watsco click here. For more ratings news on Watsco click here.
Shares of Watsco closed at $67.50 yesterday, with a 52 week range of $50.45-$80.10.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Robert Barry, said, "The trade-off between selling fewer parts but more equipment looks less beneficial post 2Q; We estimate parts rev fell 8-9% as equipment grew 5% vs. an easy comp. Lack of supplies growth was disappointing, and puzzling, casting doubt on how much WSO benefits in a housing recovery and reducing our expectations around upside/timing of upside from Carrier JVs selling more supplies. Operational issues in the new Canada JV are concerning, more so because they’re happening right out of the gate post the deal closing. Such concerns drive our target multiple down."
UBS cuts FY estimates on weak Q2 performance including: FY12 from $3.53 to $3.18 and FY13 from $4.17 to $3.85.
For an analyst ratings summary and ratings history on Watsco click here. For more ratings news on Watsco click here.
Shares of Watsco closed at $67.50 yesterday, with a 52 week range of $50.45-$80.10.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Jefferies Bumps Zumiez (ZUMZ) Numbers Up, But Remains on Sidelines
- Pandora (P) Posts 'Strong Quarter' - Needham & Company
- Janney Capital Boosts PT on Gap (GPS) Post Q1
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
UBS
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
