Watsco price target raised to $400 from $380 at Baird

Baird raised the firm’s price target on Watsco to $400 from $380 and keeps an Outperform rating on the shares. The firm believes the underlying gross margin story remains favorable with multiple self-help/regulatory levers including pricing optimization tools, price/mix benefits from refrigerant transition, and continued key OEM support. Baird said as these catalysts play out, they expect bearish sentiment to recalibrate and focus to turn back to the very favorable aspects of Watsco’s story