KeyBanc Downgrades Watsco (WSO) to Sector Weight Following Channel Checks, 'Slow Start to the Summer'

KeyBanc analyst Jeffrey Hammond downgraded Watsco (NYSE: WSO) from Overweight to Sector Weight.

The analyst comments "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. 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. Additionally, we are downgrading WSO to SW (from OW) as we believe the stock now better reflects a structurally higher margin profile, and feel shares are now appropriately valued at current levels."

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 $370.38 yesterday.

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