SiteOne downgraded to Hold on near-term risk at Deutsche Bank

Deutsche Bank analyst Joe Ahlersmeyer downgraded SiteOne Landscape to Hold from Buy with a price target of $126, down from $144. The analyst sees greater near-term risk to the company’s organic growth and margins relative to his other covered distributors. SiteOne is navigating "difficult" multi-year comparisons, gross margin normalization and uncertain end markets, Ahlersmeyer tells investors in a research note. Despite a strong earnings update in November, end-market uncertainty and alignment of price and cost present a greater downside risk to earnings than initially appreciated, says the analyst.