Piper Jaffray Downgrades Watsco to Underweight (WSO)

Piper Jaffray published its report today on Watsco, WSO downgrading WSO from Neutral to Underweight. In a note to clients, Piper Jaffray writes, "We are downgrading shares of Watsco based on several limiting factors for CY11 earnings growth, and what we see as a high relative valuation compared to peers. We expect the overhang of high unemployment, lower consumer confidence, and pressured home values will combine with reduced energy efficiency credits to make unit sales weak in CY11." Piper Jaffray decreases its PT on WSO from $57 to $55. WSO closed yesterday at $61.47, down 0.58% from Tuesday's close.