CSW Industrials' (CSW) residential HVAC market is stabilizing, but volumes remain weak with growth still price-led with similar trends continuing into fiscal 2027, Truist Securities said in a note Thursday following its Industrials & Services event.

The report said the residential market appears to have stabilized with improving sequential momentum, reflected by positive order trends through the spring.

There was more momentum in repair activity, which benefited from an aging installed base and affordability constraints around full system replacements, the note said.

CSW is using M&A to supplement growth, driving margin upside through integration actions, and expanding share of wallet via category breadth and cross-selling, the note said.

Truist kept its hold rating with a price target of $300.

Price: 280.07, Change: +9.37, Percent Change: +3.46