Lennox International (NYSE:LII) Given New $350.00 Price Target at BNP Paribas Exane

Key Points

• BNP Paribas Exane cut Lennox International’s price target from $450 to $350 and maintained a “neutral” rating, implying roughly 0.9% upside from the reported share price.
• Analyst sentiment has weakened, with Oppenheimer downgrading the stock and Wells Fargo lowering its target to $355. Overall, Lennox has an average “Hold” rating and a consensus price target of $444.85.
• Lennox reported quarterly revenue of $1.57 billion, up 10.2% year over year, but EPS of $6.84 missed the $7.29 consensus estimate. Shares traded near $346.83, well below their 12-month high of $587.27.

Lennox International (NYSE:LII - Get Free Report) had its target price lowered by research analysts at BNP Paribas Exane from $450.00 to $350.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the construction company's stock. BNP Paribas Exane's target price points to a potential upside of 0.91% from the stock's current price.

Other research analysts have also issued reports about the company. William Blair reiterated an "outperform" rating on shares of Lennox International in a research report on Wednesday, July 29th. Mizuho set a $350.00 target price on Lennox International in a research report on Thursday. Oppenheimer lowered Lennox International from an "outperform" rating to a "market perform" rating in a research note on Thursday. Weiss Ratings downgraded Lennox International from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Finally, Wells Fargo & Company reduced their price objective on shares of Lennox International from $424.00 to $355.00 and set an "equal weight" rating on the stock in a report on Thursday. Three investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Lennox International currently has an average rating of "Hold" and a consensus price target of $444.85.

Lennox International Price Performance

Shares of NYSE:LII traded down $1.28 during midday trading on Friday, hitting $346.83. The company's stock had a trading volume of 219,027 shares, compared to its average volume of 499,459. The company has a market cap of $11.99 billion, a P/E ratio of 16.08, a price-to-earnings-growth ratio of 1.53 and a beta of 1.16. Lennox International has a 12-month low of $322.00 and a 12-month high of $587.27. The business's 50 day simple moving average is $369.57 and its 200 day simple moving average is $473.02. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.77 and a current ratio of 1.21.

Lennox International (NYSE:LII - Get Free Report) last issued its earnings results on Wednesday, October 28th. The construction company reported $6.84 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.29 by ($0.45). The company had revenue of $1.57 billion during the quarter, compared to analysts' expectations of $1.57 billion. Lennox International had a net margin of 13.77% and a return on equity of 62.34%. The firm's quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.98 earnings per share. On average, analysts forecast that Lennox International will post 21.25 EPS for the current year.

Institutional Investors Weigh In On Lennox International

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Greenleaf Trust increased its stake in shares of Lennox International by 34.9% during the 3rd quarter. Greenleaf Trust now owns 739 shares of the construction company's stock valued at $262,000 after acquiring an additional 191 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Lennox International in the third quarter worth approximately $3,092,000. ProShare Advisors LLC grew its holdings in Lennox International by 12.0% in the third quarter. ProShare Advisors LLC now owns 5,492 shares of the construction company's stock valued at $1,950,000 after purchasing an additional 589 shares during the period. Vise Technologies Inc. grew its holdings in Lennox International by 416.6% in the third quarter. Vise Technologies Inc. now owns 4,536 shares of the construction company's stock valued at $1,610,000 after purchasing an additional 3,658 shares during the period. Finally, BOKF NA increased its position in Lennox International by 2.0% during the third quarter. BOKF NA now owns 2,551 shares of the construction company's stock worth $906,000 after purchasing an additional 49 shares during the last quarter. 67.07% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Lennox International

Here are the key news stories impacting Lennox International this week:

• Positive Sentiment: Third-quarter revenue increased 10.2% year over year to approximately $1.57 billion, in line with analyst expectations. The Building Climate Solutions segment grew 24%, supporting commercial-market growth. Lennox: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Lennox announced smart thermostat energy-saving services, which could strengthen its connected-home offering and create additional recurring-service opportunities. Lennox International Adds Smart Thermostat Energy Saving Services
• Neutral Sentiment: Some valuation commentary argues that LII may be substantially undervalued following the selloff, but that potential depends on a recovery in profitability and margins. Lennox Stock May Be 44% Undervalued After Margin Pressure
• Negative Sentiment: Adjusted earnings per share came in at $6.84, below the $7.29 consensus estimate and down from $6.98 a year earlier. The earnings shortfall, margin pressure, and lower guidance raised concerns about the pace of recovery. Lennox International Reports Third-Quarter Results
• Negative Sentiment: Oppenheimer downgraded Lennox from Outperform to Perform, citing inflation and competitive pressures that could delay the recovery. Lennox Downgraded at Oppenheimer
• Negative Sentiment: Stephens also cut its rating to Equal Weight, while Wells Fargo reduced its target from $424 to $355 and RBC lowered its target from $406 to $378. The revisions signal diminished near-term earnings confidence.
• Negative Sentiment: The stock reached a new one-year low and fell below its 50-day moving average after the earnings release, reinforcing negative technical momentum. LII Stock Price Crosses Below 50-Day Moving Average

Lennox International Company Profile

Lennox International Inc is a heating, ventilation, air conditioning and refrigeration company headquartered in Richardson, Texas. Founded in 1895 by Dave Lennox, the company develops and markets products designed to provide climate control and improve indoor air quality in residential and commercial buildings.

Its product portfolio includes air conditioners, heat pumps, furnaces, air handlers, thermostats, indoor air-quality equipment and related controls. Lennox also provides commercial heating and cooling systems, replacement components, installation support and other services through distributors, dealers and contractors.

Lennox primarily serves customers in the United States and Canada, with products and services also marketed in selected international markets.

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