UPDATE - UBS Downgraded Lennox International (LII) to Neutral; Visibility lower, Revised Outlook Not Clearly “Beatable”

UPDATE - UBS downgraded Lennox International (NYSE: LII) from Buy to Neutral, PT lowered from $52 to $38.

UBS analyst says, "Downgrading despite price pullback on harder to dimension downside risk - 2Q and the revised outlook were worse than expected. Visibility remains low on key headwinds abating, namely cost inflation, a weak consumer and stagnant housing, and we’re more concerned about waning price power and the still-developing R-22 impact on mix. While the stock price pullback resets risk/reward and the revised outlook seems reasonable, we don’t find it clearly “beatable.” Curtailed distribution investment also weakens our LT growth/margin thesis." (UBS slashes FY11 EPS estimate from $2.81 to $2.05 and FY12 from $3.69 to $3.05)

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