UBS maintains a 'Sell' on Watsco (WSO); Growing Mix Headwind Weighing on Growth
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Price: $443.21 -0.18%
Rating Summary:
6 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 22 | Down: 21 | New: 11
Rating Summary:
6 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 22 | Down: 21 | New: 11
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UBS maintains a 'Sell' on Watsco (NYSE: WSO) price target lowered $1 to $49.00.
UBS analyst says, "3Q takeaways: better volume more than offset by severe mix pressures - We think broader availability of “R-22” units boosted 3Q replacement volume, but the cheaper units weighed on mix and revenue, which we see remaining a headwind at least through 2012. The mix pressure caused a miss on margins too, but strong cost controls yielded a small y/y 20bp gain at the EBIT level. The 2011 outlook was cut to $2.65-$2.75 from “above $2.86;” We think weak consumer/ resi end markets pose downside risk and restrict upside potential."
UBS lowers FY11 EPS estimate from $2.78 to $2.65 and FY12 from $3.28 to $3.20.
For more ratings news on Watsco click here and for the rating history of Watsco click here.
Shares of Watsco closed at $59.62 yesterday.
UBS analyst says, "3Q takeaways: better volume more than offset by severe mix pressures - We think broader availability of “R-22” units boosted 3Q replacement volume, but the cheaper units weighed on mix and revenue, which we see remaining a headwind at least through 2012. The mix pressure caused a miss on margins too, but strong cost controls yielded a small y/y 20bp gain at the EBIT level. The 2011 outlook was cut to $2.65-$2.75 from “above $2.86;” We think weak consumer/ resi end markets pose downside risk and restrict upside potential."
UBS lowers FY11 EPS estimate from $2.78 to $2.65 and FY12 from $3.28 to $3.20.
For more ratings news on Watsco click here and for the rating history of Watsco click here.
Shares of Watsco closed at $59.62 yesterday.
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