Watsco downgraded to Market Perform from Outperform at William Blair

William Blair downgraded Watsco (WSO) to Market Perform from Outperform without a price target The firm’s recent heating, ventilation, and air conditioning survey indicates a “sizeable” Q3 earnings miss for Watsco. Blair now sees material earnings risk over the next two quarters based on its soft HVAC survey. It cut estimates below consensus to reflect “rough conditions” in the South and downgraded Watsco into earnings. The firm has little optimism that demand will improve as the company’s comparisons toughen.