What Recent Developments Mean for the Narrative Around Watsco

Watsco's consensus analyst price target has recently been lowered from $437.80 to $415.60. This marks a notable shift in expectations for the stock. This adjustment comes as analysts weigh mixed signals regarding the company's performance and sector outlook. Stay tuned to discover how you can keep informed as market sentiment around Watsco continues to evolve.

Stay updated as the Fair Value for Watsco shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Watsco.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Among the latest commentary, there is limited overtly bullish sentiment expressed by analysts. UBS maintains a Neutral rating on Watsco, adjusting its price target downward to $425 from $450. This suggests some confidence in the company's current valuation, even if upside potential appears more constrained in the near term. Despite the lowered target, the lack of substantial downgrade or negative outlook from UBS could indicate that certain analysts believe Watsco's execution and market presence may help the company weather current industry pressures.

🐻 Bearish Takeaways

William Blair downgraded Watsco to Market Perform from Outperform, reflecting a sharper note of caution. According to the firm's recent HVAC sector survey, Watsco is at risk of a considerable third quarter earnings miss, with material earnings risk projected over the next two quarters. William Blair cited "rough conditions" in southern markets and tougher year-over-year comparisons as factors contributing to a more pessimistic view. The analyst cut estimates below consensus and expressed limited optimism that demand will improve in the short term. UBS also revised its price target down from $450 to $425, reflecting less enthusiasm for significant upside while retaining a Neutral view. This signals continued near-term risks and valuation concerns in the current environment.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!NYSE:WSO Community Fair Values as at Nov 2025

What's in the News

William Blair downgraded Watsco to Market Perform from Outperform. The firm expects a significant third quarter earnings miss and sees material risk to earnings over the next two quarters due to ongoing soft demand in the HVAC market. Recent survey results from William Blair highlighted especially challenging conditions for Watsco in southern U.S. markets, prompting the firm to lower its earnings estimates below consensus expectations. Watsco recently hosted its Analyst and Investor Day, where company leaders shared updates on operational strategies and outlined near-term objectives to address current market headwinds.

Story Continues

How This Changes the Fair Value For Watsco

Consensus Analyst Price Target has been lowered from $437.80 to $415.60. The Discount Rate has risen slightly, moving from 7.87% to 7.93%. Revenue Growth expectations have decreased modestly, from 3.80% to 3.73%. Net Profit Margin has increased from 7.39% to 7.82%. Future P/E has declined from 33.6x to 30.7x.

🔔 Never Miss an Update: Follow The Narrative

On Simply Wall St, Narratives are an easy way to see the story behind a company’s numbers. A Narrative ties together a user’s perspective on a business with their financial forecasts and fair value estimate. Available in the Community page, Narratives help millions of investors judge when a stock is under or overvalued by comparing fair value to price. They update dynamically as new information arrives.

Read the original Narrative on Watsco to stay ahead of market-moving developments and discover:

The latest outlook on Watsco’s A2L transition and high-efficiency systems, and why they could drive future growth and margins. How Watsco’s debt-free balance sheet empowers it to adapt, invest, and seize strategic opportunities, even in uncertain conditions. Which market, economic, and regulatory risks could impact the story, helping you gauge when forecasts or valuations might change.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include WSO.

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