Lennox International (NYSE:LII) Stock Gets Downgrade from Stephens

Key Points

• Stephens downgraded Lennox International to “equal weight” from “overweight” and set a $350 price target, implying approximately 5.2% upside from the prior close.
• Other analysts have also turned more cautious: Goldman Sachs, Oppenheimer, Weiss Ratings and Morgan Stanley issued downgrades or reduced targets. The stock has a consensus “Hold” rating with a $466.54 target price.
• Lennox’s latest quarter showed 10.2% year-over-year revenue growth, but EPS of $6.84 missed estimates and declined from the prior year. Margin pressures, pricing competition, inflation and tariffs contributed to weaker expectations.

Lennox International (NYSE:LII - Get Free Report) was downgraded by stock analysts at Stephens from an "overweight" rating to an "equal weight" rating in a research report issued to clients and investors on Thursday, Briefing.com reports. They currently have a $350.00 price objective on the construction company's stock. Stephens's price target would suggest a potential upside of 5.24% from the stock's previous close.

A number of other research firms also recently weighed in on LII. The Goldman Sachs Group downgraded shares of Lennox International from a "buy" rating to a "neutral" rating and decreased their price target 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. Weiss Ratings downgraded Lennox International from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Wells Fargo & Company started coverage on Lennox International in a research note on Friday, September 25th. They set an "equal weight" rating and a $424.00 price objective for the company. Finally, Morgan Stanley cut their price objective on Lennox International from $375.00 to $350.00 and set an "underweight" rating for the company in a report on Thursday, October 15th. Three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $466.54.

Lennox International Stock Performance

Shares of NYSE LII opened at $332.58 on Thursday. Lennox International has a one year low of $325.70 and a one year high of $587.27. The business's 50-day moving average price is $371.01 and its two-hundred day moving average price is $473.93. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.57 and a quick ratio of 0.77. The company has a market capitalization of $11.49 billion, a P/E ratio of 15.04, a price-to-earnings-growth ratio of 1.57 and a beta of 1.16.

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LII. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Lennox International during the 3rd quarter worth about $3,092,000. ProShare Advisors LLC raised its holdings in shares of Lennox International by 12.0% in the 3rd 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. raised its holdings in shares of Lennox International by 416.6% in the 3rd 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. BOKF NA lifted its stake in Lennox International by 2.0% in the 3rd quarter. BOKF NA now owns 2,551 shares of the construction company's stock valued at $906,000 after purchasing an additional 49 shares during the last quarter. Finally, Generali Asset Management SPA SGR lifted its stake in Lennox International by 30.8% in the 3rd quarter. Generali Asset Management SPA SGR now owns 1,481 shares of the construction company's stock valued at $526,000 after purchasing an additional 349 shares during the last quarter. 67.07% of the stock is currently owned by institutional investors.

Trending Headlines about 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 $1.6 billion. The Building Climate Solutions segment was particularly strong, with revenue rising 24%, supporting commercial-market growth. Lennox: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Lennox announced smart thermostat energy-saving services, potentially expanding recurring or connected-home offerings and strengthening its energy-efficiency strategy. Lennox International Adds Smart Thermostat Energy Saving Services
• Neutral Sentiment: Some valuation commentary suggests LII could be undervalued after its decline, with one analysis estimating substantial upside if margin pressure eases. However, that thesis depends on earnings recovering and guidance stabilizing. Lennox Stock May Be 44% Undervalued After Margin Pressure
• Negative Sentiment: Adjusted third-quarter EPS was $6.84, below consensus estimates ranging from $7.18 to $7.33, and down from $6.98 a year earlier. Revenue also fell slightly short of expectations. Lennox Q3 Earnings Lag Estimates
• Negative Sentiment: Management cut 2026 adjusted EPS guidance to $21.00–$21.50 from $23.00–$24.00. Competitive pricing, inflation, tariffs, lower factory absorption and margin pressure in Home Comfort Solutions weighed on results, prompting the market selloff and a new 52-week low. Lennox Reports 2026 Third Quarter Earnings Results

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.