Added to YB: 2026-09-04
Pitch date: 2026-08-30
WSO [neutral]
Watsco, Inc.
+1.88%
current return
Author Info
No bio for this author
Company Info
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean.
Market Cap
$12.2B
Pitch Price
$309.55
Price Target
433.00 (+40%)
Dividend
4.26%
EV/EBITDA
14.34
P/E
27.00
EV/Sales
1.75
Sector
Trading Companies and Distributors
Category
value
Klarman’s Special Situation Stock + Portfolio & Watchlist Update - Watsco, Inc.
WSO (watchlist): Watsco is North America’s largest HVAC and refrigeration distributor — not a data-center cooling play — with 75-80% residential exposure and 70-80% replacement demand. François Rochon opened a small position in Q2; weak volumes and repair-over-replace behavior left Q2 revenue up 2% to $2.1 billion and EPS down 12% to $4.00. Shares at $313 are nearly 40% below 2025 highs versus Morningstar’s $433 fair-value estimate. Risks include unresolved succession and low entry barriers that may limit consolidation.
Read full article (1 min)