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Research Alert: CFRA Cuts View On Shares Of Watsco, Inc. To Sell From Hold On Valuation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We cut our 12-month target by $68 to $376, based on relative valuation and DCF model analyses. Our downgrade is on valuation, with shares up about 30% YTD, well above the average 9% improvement YTD for a basket of peers. WSO shares are also now trading at a healthy premium to their historical forward average, but we see low single digit revenue growth in 2026 and 2027, and even giving WSO credit for some margin expansion in 2027, we think shares are expensive. On a relative basis, we apply a 26x multiple to our 2027 EPS estimate, in line with WSO's 10-year historical forward average, yielding a value of $366 per share. Meanwhile, our DCF model, using free cash flow growth of 14% per year for 10 years, terminal growth of 2.5%, and a WACC of 8.1%, yields an intrinsic value of $386 per share. We cut our 2026 EPS estimate by $0.04 to $12.60 and our 2027 estimate by $1.00 to $14.06. We still like the longer-term investment thesis for WSO but think shares may need to take a breather after a fast start to 2026.
RBC Raises Price Target on Sunoco to $76 From $64, Keeps Outperform Rating
Sunoco (SUN) has an average rating of buy and mean price target of $70.50 according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $69.70, Change: $+0.04, Percent Change: +0.06%