Watsco price target raised to $335 from $310 at KeyBanc

KeyBanc analyst Jeffrey Hammond raised the firm’s price target on Watsco to $335 from $310 and keeps an Overweight rating on the shares. The firm is now more confidence that Watsco can hold margins resilient, with the multi-year increase more about structural change than inflation-driven margin expansion. KeyBanc expects Watsco to be able to hold gross margins to its 27% target, where many investors have expressed skepticism, and views it as more insulated to near-term destocking dynamics.