Watsco initiated with a Neutral at UBS

UBS analyst Damian Karas initiated coverage of Watsco with a Neutral rating and $280 price target. While Karas believes secular growth drivers abound the HVAC industry and Watsco is likely to remain a leading consolidator in the fragmented distribution market, cyclical factors will make for a more challenging near-term environment for the stock, the analyst tells investors in a research note. He sees relatively balanced risk-reward over the next year.