UBS Maintains a 'Neutral' on Lennox International (LII); Raising Target Into Dec 14th Investor Day

UBS maintains a 'Neutral' on Lennox International (NYSE: LII) price target raised from $32 to $37.

UBS analyst says, "Our unchanged, above consensus 2012 EPS of $2.90 assumes modest volume and price gains (much outside Resi) and sizable cost cuts, net of mix and commodity headwinds that are likely much less severe than in 2011. The stock likely sees real momentum only when demand in the core consumer- and housing-driven Resi business picks up, but in the meantime we see earnings support from aggressive cost actions. Better consumer/ housing data is also slowly improving risk/reward."

"See analyst day pairing modest volume outlook with large cost tailwinds Added clarity on cost actions adding earnings support while waiting for demand to pick up could give shares a boost. We expect a muted volume outlook with a 1Q12 Resi boost from new furnaces and R-22 plus further, albeit moderating Commercial growth..."

For an analyst ratings summary and ratings history on Lennox International click here. For more ratings news on Lennox International click here.

Shares of Lennox International closed at $34.39 yesterday.

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