Lennox's Commercial HVAC Business Initiatives Win Over KeyBanc Analyst, Upgrades Stock

KeyBanc Capital Markets analyst Jeffrey D. Hammond upgraded Lennox International Inc LII from Sector Weight to Overweight with a price target of $355.
The analyst expects the company's initiatives to boost utilization in its distribution footprint and drive higher non-equipment sales through the channel, leading to the generation of profitability.
Also, given LII's direct-to-dealer model, Hammond thinks LII will be safer than its peers amid de-stocking pressures.
The analyst applauds LII's move to enhance its Commercial HVAC business and sees plenty of scope for factory efficiency improvements, which can boost earnings going forward.
Hammond expects LII's formal guidance to increase following Q2 2023 earnings and see a consensus boost.
The analyst expects EPS of $5.27 (vs consensus: $5.17) in Q2 2023, $15.30 (consensus: $15.22) in 2023 and $16.85 (consensus: $16.68) in 2024.
Price Action: LII shares are trading higher by 1.5% at $299.12 on the last check Tuesday.

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