Watsco (NYSE:WSO)‘s stock had its “neutral” rating restated by Zacks in a research note issued to investors on Thursday, American Banking News reports. They currently have a $97.00 price objective on the stock. Zacks‘ price objective suggests a potential upside of 5.10% from the company’s current price.
Zacks‘ analyst wrote, “Watsco’s third-quarter 2013 adjusted earnings increased 11% year over year to $1.32 per share. Watsco has immense potential in the replacement market given an aging stock of air conditioners and heating systems in the U.S. Watsco’s joint venture with Carrier Corporation remains successful and its option to purchase an additional 10% interest in the venture in the Sun Belt region will be accretive to earnings. Watsco outlined its long-term plans to improve revenues to above $10 billion and margins above 10% driven by new product offerings, geographic expansion, and logistical, productivity improvements. However, the volatility in housing starts and lack of potential acquisitions remain the concerns. We are maintaining our Neutral recommendation on Watsco with a target price of $97.00. “
Watsco (NYSE:WSO) traded down 0.47% during mid-day trading on Thursday, hitting $91.86. The stock had a trading volume of 132,241 shares. Watsco has a one year low of $70.21 and a one year high of $98.13. The stock’s 50-day moving average is $95.38 and its 200-day moving average is $91.5. The company has a market cap of $2.958 billion and a P/E ratio of 28.10.
Watsco (NYSE:WSO) last posted its quarterly earnings results on Wednesday, October 16th. The company reported $1.32 EPS for the quarter, missing the Thomson Reuters consensus estimate of $1.43 by $0.11. The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter in the prior year, the company posted $1.19 earnings per share. The company’s quarterly revenue was up 6.0% on a year-over-year basis. On average, analysts predict that Watsco will post $3.67 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on WSO. Analysts at JPMorgan Chase & Co. cut their price target on shares of Watsco from $94.00 to $93.00 in a research note to investors on Thursday, October 17th. They now have an “underweight” rating on the stock. Separately, analysts at Robert W. Baird reiterated a “buy” rating on shares of Watsco in a research note to investors on Monday, October 7th. They now have a $113.00 price target on the stock. Finally, analysts at Barclays raised their price target on shares of Watsco from $81.00 to $89.00 in a research note to investors on Monday, October 7th. They now have an “underweight” rating on the stock. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and three have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $96.89.
Watsco, Inc(NYSE:WSO) is the distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (HVAC/R) in the HVAC/R distribution industry.
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