CFRA Downgrades Watsco (WSO) to Sell

CFRA analyst Jonathan Sakraida downgraded Watsco (NYSE: WSO) from Hold to Sell with a price target of $380.00.

The analyst comments "As the S&P 500 and Dow extend further into record territory, the Industrial sector has climbed higher in turn, with WSO being an Industrial name that we view as now trading above fair value. WSO shares have returned 35% over the past 12 months, outperforming the S&P 500's 27%, and are now trading at a premium on a forward P/E basis versus the company's long-term historical average. Our 12-month target of $380 (23.3x our 2025 EPS estimate of $16.32 and 25.3x our 2024 EPS outlook of $15.01) implies about 12% downside from the current share price. In the near term, we anticipate a mixed demand environment in residential markets, as well as related HVAC equipment, to hold back potential multiple expansion for WSO."

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 $431.97 yesterday.

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