William Blair analyst Ryan Merkel has maintained their bullish stance on WSO stock, giving a Buy rating on August 21.
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Ryan Merkel has given his Buy rating due to a combination of factors including stabilized demand and firm pricing for Watsco’s products. The meetings with Rick Gomez highlighted that the demand trends and pricing strategies are on a stable path, which is crucial for the company’s growth. Additionally, the company is focusing on new initiatives like Watsco One, which are expected to enhance operational efficiency and customer satisfaction.
Moreover, despite a challenging year for the HVAC industry, with shares down 17% year-to-date, Merkel anticipates improved stock performance in the latter half of 2025. This optimism is based on the company’s achievable targets and the ongoing transition to A2L refrigerants. The upcoming investor day is also expected to shed light on new strategies and digital tools aimed at improving customer experience, which could further bolster investor confidence.
In another report released on August 21, Robert W. Baird also maintained a Buy rating on the stock with a $480.00 price target.