Morgan Stanley analyst Joshua Pokrzywinski raised the firm’s price target on Watsco to $289 from $269 and keeps an Underweight rating on the shares. Watsco has now compped the inventory margin benefits of 2022, but gross margins have remained resilient, with headwinds mostly offset by customer and some supplier actions, the analyst tells investors. While the firm sees "less of an imminent earnings/margin collapse," it also argues that the risk/reward "isn’t favorable ahead of the season in this macro backdrop."
Published first on TheFly
See Insiders’ Hot Stocks on TipRanks >>
Read More on WSO: