01:00 PM EDT, 04/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Despite the positive movement in share price today, we believe that WSO's Q1 results were underwhelming. We keep our 12-month target at $380, valuing shares at 23.7x our 2025 EPS forecast of $16.02 (trimmed from $16.32; 2024 EPS reduced by $0.85 to $14.16), below WSO's long-term historical forward average given cyclical challenges in residential markets. WSO posted Q1 EPS of $2.17 (down 23% Y/Y), falling short of a conservative consensus by $0.12. Q1 revenues undershot expectations by $28M, increasing 1% (same store-sales dropped 2% Y/Y). At a 28x forward P/E, shares are trading at a premium relative to WSO's long-term average despite end-market uncertainty. The summer selling season may test WSO's recent gains if customers remain cautious amid a still elevated interest rate environment. Operating margins declined 250 bps Y/Y on softer gross profit and an uptick SG&A expenses. We keep WSO shares at Sell.