Lennox International (NYSE:LII) Given New $378.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Lennox International’s price target to $378 from $406 while maintaining a “sector perform” rating, implying 8.71% upside from the prior close.
• Analyst sentiment has broadly weakened, with Goldman Sachs, Oppenheimer, Stephens and Wells Fargo issuing downgrades or lowering price targets. MarketBeat’s consensus rating is “Hold,” with an average target of $459.08.
• Lennox reported quarterly revenue growth of 10.2% to $1.57 billion, but earnings of $6.84 per share missed estimates and declined year over year. Margin pressures and other cost headwinds have prompted management to reduce full-year adjusted EPS guidance.

Lennox International (NYSE:LII - Get Free Report) had its price target cut by Royal Bank Of Canada from $406.00 to $378.00 in a research report issued on Thursday, Benzinga reports. The firm presently has a "sector perform" rating on the construction company's stock. Royal Bank Of Canada's price target indicates a potential upside of 8.71% from the company's previous close.

Other research analysts have also issued reports about the stock. The Goldman Sachs Group lowered shares of Lennox International from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $547.00 to $390.00 in a research note on Wednesday, October 14th. Oppenheimer cut Lennox International from an "outperform" rating to a "market perform" rating in a report on Thursday. Stephens downgraded Lennox International from an "overweight" rating to an "equal weight" rating and set a $350.00 price objective on the stock. in a research report on Thursday. Weiss Ratings lowered Lennox International from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Finally, Wells Fargo & Company lowered their price objective on Lennox International from $424.00 to $355.00 and set an "equal weight" rating on the stock in a research note on Thursday. Three analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $459.08.

Lennox International Price Performance

Shares of NYSE:LII traded up $15.06 during trading on Thursday, reaching $347.70. The stock had a trading volume of 973,024 shares, compared to its average volume of 499,283. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.77 and a current ratio of 1.57. Lennox International has a 1-year low of $322.00 and a 1-year high of $587.27. The stock has a market cap of $12.02 billion, a PE ratio of 15.72, a PEG ratio of 1.57 and a beta of 1.16. The business has a fifty day moving average price of $371.01 and a 200-day moving average price of $473.93.

Lennox International (NYSE:LII - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The construction company reported $6.84 earnings per share for the quarter, missing analysts' consensus estimates of $7.33 by ($0.49). Lennox International had a net margin of 14.61% and a return on equity of 66.42%. The firm had revenue of $1.57 billion during the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter in the previous year, the business posted $6.98 EPS. The company's revenue for the quarter was up 10.2% on a year-over-year basis. On average, equities analysts forecast that Lennox International will post 23.27 earnings per share for the current fiscal year.

Institutional Trading of Lennox International

A number of hedge funds and other institutional investors have recently made changes to their positions in LII. BlackRock Inc. purchased a new stake in shares of Lennox International in the 2nd quarter valued at $1,704,846,000. Beacon Pointe Advisors LLC purchased a new stake in Lennox International during the second quarter worth about $239,217,000. Bank of America Corp DE purchased a new stake in Lennox International during the second quarter worth about $196,075,000. Deutsche Bank AG purchased a new stake in Lennox International during the second quarter worth about $159,181,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Lennox International during the second quarter worth about $109,955,000. Institutional investors and hedge funds own 67.07% of the company's stock.

Key Stories Impacting Lennox International

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

• Positive Sentiment: Third-quarter revenue rose 10.2% year over year to approximately $1.6 billion. The Building Climate Solutions segment was a key growth driver, with revenue up 24%, supporting commercial-market expansion. Lennox: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Lennox is adding smart thermostat energy-saving services, which could strengthen its connected-home offering and create additional recurring customer engagement over time. Lennox Adds Smart Thermostat Energy Saving Services
• Neutral Sentiment: Some investors view the recent decline as a potential valuation opportunity, with one analysis suggesting LII may be materially undervalued despite ongoing margin pressure. That thesis depends on a recovery in profitability and earnings expectations. Lennox Stock May Be Undervalued After Margin Pressure
• Negative Sentiment: Adjusted third-quarter EPS was $6.84, below analyst estimates and down from $6.98 a year earlier. Revenue also came in slightly below expectations, while total segment profit declined 2%. Lennox Reports Third Quarter Earnings Results
• Negative Sentiment: Management cut full-year 2026 adjusted EPS guidance to $21.00–$21.50 from $23.00–$24.00. Competitive pricing, inflation, tariffs and lower factory absorption weighed on margins, particularly in Home Comfort Solutions. Lennox Falls After Profit Miss and Lowered Outlook
• Negative Sentiment: Analysts turned more cautious: Oppenheimer downgraded LII to Perform, Stephens cut its rating to Equal Weight with a $350 target, and Wells Fargo lowered its target to $355 while maintaining Equal Weight. These targets imply limited upside and reinforce concerns about earnings recovery. Oppenheimer Downgrades Lennox International

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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