Oppenheimer Maintains Watts Water Technologies Rating

Watts Water Technologies, Inc. WTS exceeded expectations in the quarter and demonstrated solid operating margin leverage driven by productivity improvements and better volumes, Oppenheimer reports. “However, near term, we view the environment as incrementally more challenging as North American retail and wholesale customers batten down the inventory hatches into year-end and price/cost pressures remain challenging,” Oppenheimer writes. “The residential construction outlook through 2011 remains cloudy; however, with potential for commercial to return to growth in 2H11, we believe the picture could become more interesting over the next few quarters.” At this time, Oppenheimer said that it maintains its Perform rating. Watts Water Technologies currently trades at $35.61.