UPDATE: P Morgan Downgrades Watsco to Underweight on Lack of Catalysts

JP Morgan downgraded Watsco, Inc. WSO from Overweight to Underweight and lowered the price target from $78.00 to $72.00. JP Morgan noted, "We are moving WSO to a relative Underweight as we think balance-sheet related catalysts have played out and the risk/reward around fundamentals at this high of a multiple looks unattractive. There is nothing wrong with the underlying operating story here, but with housing-related sentiment this bullish (arguably the most Consensus call out there) we think anything short of a strong 2013 is likely to disappoint. After the special dividend and recent acquisitions, the company is no longer overcapitalized, the dividend is flat at best going forward, and a ~3% yield is no longer as differentiated at current levels." Watsco closed at $76.99 on Thursday.