CARR - Watsco downgraded to Sector Weight at KeyBanc Capital
2023-07-10 08:18:24 ET
Watsco ( NYSE: WSO ) on Monday was downgraded to Sector Weight from a prior investment rating of Overweight by analysts at KeyBanc Capital Markets. They said the distributor of heating, ventilation and air-conditioning equipment faces slower sales than previously estimated.
“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,” Jeffrey D. Hammond, analyst at KeyBanc, said in a July 10 report. “While exceptionally hot weather in the latter half of June has set the stage for accelerating demand into early 3Q, we maintain that the residential channel remains overstocked.”
KeyBanc lowered its EPS estimates for Watsco ( WSO ) to $14.25 from a previous forecast of $14.50 for full-year 2023, and for full-year 2024 to $14.85 from $15.05.
The bank also lowered EPS estimates for Carrier ( CARR ), a maker and distributor of HVAC equipment, for full-year 2023 to $2.52 from $2.55. The analysts maintained a Sector Weight rating for Carrer ( CARR ).
| KeyBanc Capital Markets estimates, July 10 |
| Watsco ( WSO ) |
| EPS |
| New |
| Old |
| 2023E |
| $14.25 |
| $14.50 |
| 2024E |
| $14.85 |
| $15.05 |
| Carrier ( CARR ) |
| EPS |
| New |
| Old |
| 2023E |
| $2.52 |
| $2.55 |
| 2024E |
| No change |
| $2.80 |
More about HVAC companies
- U.S. shipments of HVAC equipment slump from year earlier
- Lennox International upgraded to Overweight at KeyBanc
For further details see:
Watsco downgraded to Sector Weight at KeyBanc Capital