UPDATE: Piper Jaffray Color on Watsco Upgrade

Piper Jaffray, which upgraded shares of Watsco Inc. WSO, is providing some color on the stock. “With the exception of California (7% of branches), Watsco's top 10 states in terms of branches (~82% of branches) have all experienced significant departures from normal temps,” Piper Jaffray writes. “While Watsco shares do not appear cheap, (~20x's CY11 consensus) we are more constructive based on the warm temps, and believe shares could outperform in the near term. Our new price target goes to $69 based on 18x's our CY12 EPS of $3.85 which reflects an additional 10% stake in the original Carrier JV.” Watsco closed Monday at $64.06.