MKM Partners Maintains a 'Neutral' on Watsco (WSO); Cutting Numbers as Demand and Mix Fall Short
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Price: $314.98 +1.67%
Rating Summary:
6 Buy, 18 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 7 | New: 64
Rating Summary:
6 Buy, 18 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 7 | New: 64
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MKM Partners maintains a 'Neutral' on Watsco (NYSE: WSO) price target of $73.00 (from $82.00).
Analyst, Joshua Pokrzywinski, said, "While some structural headwinds in the recovery emerged with earnings and warrant revaluation, we view this reaction as overdone given some temporary factors. Selling season enthusiasm across the HVAC space likely resulted in WSO’s being over-owned, but we believe the resetting of expectations yields value near current levels – although prior highs appear optimistic for now...We are lowering our 2012E EPS to $3.20 (from $3.40), primarily based on the 2Q miss. Our new 2013E EPS of $3.75 (down from $4.30) implies lower operating leverage from an equipment-led recovery and a modest trim to the top line based on efficiency mix headwinds."
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 $66.40 yesterday.
Analyst, Joshua Pokrzywinski, said, "While some structural headwinds in the recovery emerged with earnings and warrant revaluation, we view this reaction as overdone given some temporary factors. Selling season enthusiasm across the HVAC space likely resulted in WSO’s being over-owned, but we believe the resetting of expectations yields value near current levels – although prior highs appear optimistic for now...We are lowering our 2012E EPS to $3.20 (from $3.40), primarily based on the 2Q miss. Our new 2013E EPS of $3.75 (down from $4.30) implies lower operating leverage from an equipment-led recovery and a modest trim to the top line based on efficiency mix headwinds."
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 $66.40 yesterday.
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