Lennox International (NYSE:LII) Rating Increased to Buy at Vertical Research

Key Points

• Vertical Research upgraded Lennox International from a "hold" to a buy and set a $600 price objective, implying roughly a 16% upside from the current price.
• Q1 results: Lennox reported $3.35 EPS (beat consensus of ~$3.16) and revenue of about $1.14B (up ~5.8% y/y), and management maintained FY2026 guidance of $23.50–25.00 EPS, although EPS was still below the prior-year quarter and operating income showed some softness.
• Analyst sentiment is mixed—five Buys, ten Holds and two Sells—leaving a MarketBeat consensus rating of "Hold" with a consensus price target of $566.46, below Vertical's $600 target.

Lennox International (NYSE:LII - Get Free Report) was upgraded by Vertical Research from a "hold" rating to a "buy" rating in a note issued to investors on Thursday. The firm currently has a $600.00 price objective on the construction company's stock. Vertical Research's target price would indicate a potential upside of 15.94% from the company's current price.

Several other analysts also recently commented on LII. JPMorgan Chase & Co. upped their price objective on shares of Lennox International from $493.00 to $541.00 and gave the company an "underweight" rating in a report on Friday, January 16th. Morgan Stanley dropped their price objective on shares of Lennox International from $475.00 to $450.00 and set an "underweight" rating on the stock in a report on Monday, February 2nd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Lennox International in a report on Thursday, January 22nd. Barclays cut their target price on shares of Lennox International from $667.00 to $600.00 and set an "overweight" rating for the company in a report on Wednesday, April 1st. Finally, Royal Bank Of Canada cut their target price on shares of Lennox International from $563.00 to $534.00 and set a "sector perform" rating for the company in a report on Thursday, January 29th. Five research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Lennox International has a consensus rating of "Hold" and a consensus price target of $566.46.

Lennox International Stock Up 4.4%

LII stock opened at $517.53 on Thursday. The firm's fifty day simple moving average is $498.39 and its 200-day simple moving average is $502.93. The company has a market capitalization of $18.02 billion, a P/E ratio of 23.27, a price-to-earnings-growth ratio of 1.93 and a beta of 1.21. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.60 and a quick ratio of 0.63. Lennox International has a 12 month low of $434.06 and a 12 month high of $689.44.

Lennox International (NYSE:LII - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The construction company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.16 by $0.19. The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.54 billion. Lennox International had a net margin of 15.13% and a return on equity of 80.23%. The business's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the prior year, the firm earned $3.63 EPS. Lennox International has set its FY 2026 guidance at 23.500-25.000 EPS. As a group, equities research analysts forecast that Lennox International will post 24.25 earnings per share for the current year.

Insider Buying and Selling at Lennox International

In other Lennox International news, CAO Chris Kosel sold 254 shares of the stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $536.50, for a total transaction of $136,271.00. Following the transaction, the chief accounting officer directly owned 1,090 shares of the company's stock, valued at $584,785. This trade represents a 18.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Todd J. Teske sold 700 shares of the stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $533.45, for a total transaction of $373,415.00. Following the transaction, the director directly owned 6,881 shares in the company, valued at approximately $3,670,669.45. The trade was a 9.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,054 shares of company stock valued at $563,687 over the last ninety days. Corporate insiders own 9.80% of the company's stock.

Institutional Investors Weigh In On Lennox International

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC boosted its position in Lennox International by 10.9% during the first quarter. V Square Quantitative Management LLC now owns 1,184 shares of the construction company's stock worth $550,000 after acquiring an additional 116 shares during the last quarter. Root Financial Partners LLC boosted its position in Lennox International by 137.9% during the first quarter. Root Financial Partners LLC now owns 69 shares of the construction company's stock worth $32,000 after acquiring an additional 40 shares during the last quarter. Fiduciary Alliance LLC acquired a new position in Lennox International during the first quarter worth about $543,000. Fifth Third Wealth Advisors LLC boosted its position in Lennox International by 11.9% during the first quarter. Fifth Third Wealth Advisors LLC now owns 583 shares of the construction company's stock worth $271,000 after acquiring an additional 62 shares during the last quarter. Finally, Campbell Newman Asset Management Inc. acquired a new position in Lennox International during the first quarter worth about $17,555,000. Institutional investors and hedge funds own 67.07% of the company's stock.

Key Headlines Impacting Lennox International

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

• Positive Sentiment: Q1 EPS beat and revenue roughly in line/above expectations: Lennox reported GAAP EPS of $3.35 versus consensus ~$3.16 and revenue of about $1.1–1.14B (up ~6% y/y), which investors typically reward. PR: Q1 Results
• Positive Sentiment: Maintained FY 2026 guidance: Management kept EPS guidance at $23.50–25.00, a range that brackets Street estimates and reduces near‑term forecast risk. That steady outlook supported the rally. Slide Deck / Guidance
• Positive Sentiment: Strong profitability metrics: Q1 net margin (~15.1%) and an elevated ROE (reported ~80%) signal durable pricing or cost leverage, which investors view favorably for cash generation and returns. MarketBeat: Metrics & Call
• Neutral Sentiment: Earnings call and presentation available for detail: Management commentary and the slides are posted (useful for judging demand trends, backlog and margin drivers). Investors may parse the transcript for forward commentary. Earnings Call Transcript
• Negative Sentiment: Some operating softness vs. prior year: GAAP operating income declined ~3% and Q1 EPS was lower than the prior‑year quarter ($3.35 vs $3.63), highlighting margin and volume pressures that could cap upside. Zacks: Key Metrics

Lennox International Company Profile

Lennox International Inc is a global manufacturer of climate control products and services, principally serving residential and commercial heating, ventilation and air conditioning (HVAC) markets. The company designs, engineers and produces a range of products including furnaces, air conditioners, heat pumps, air handlers, packaged rooftop units and related controls and indoor air quality equipment. Lennox also supplies aftermarket parts and accessories and supports its product lines with technical service, training and warranty programs for dealer and distribution partners.

Originally founded in 1895 by Dave Lennox, the company has grown from its early roots into a multinational business with operations concentrated in North America and a presence in other international markets.

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