UBS on Lennox International (LII); Outlook Seems Conservative, Less So After Factoring Weaker Cost Performance
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Price: $416.34 -1.34%
Rating Summary:
11 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
11 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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UBS maintains a 'Neutral' on Lennox International (NYSE: LII) price target lowered from $37 to $33.
UBS analyst said, "With cost performance providing less support than expected we think the investment case becomes even more about timing a consumer/housing recovery. Though a growing population of old, band-aided resi units likely magnifies that recovery, commercial is doing well, and the B/S and FCF are strong so risk/ reward may seem compelling on a multi-year view, less so on our 12-month horizon."
"Our 2012 EPS estimate falls to $2.65, above the high end of LII’s range even on our core sales growth of 2% vs. LII’s 2-6%. We think price tracks ahead of commodities (LII’s price assumption seems conservative), volume offsets mix pressure, and cost saves more than offset higher SG&A. Adding a $0.15 buyback tailwind and $0.12 Kysor deal accretion gets us just above the outlook’s high end."
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 $31.99 yesterday.
UBS analyst said, "With cost performance providing less support than expected we think the investment case becomes even more about timing a consumer/housing recovery. Though a growing population of old, band-aided resi units likely magnifies that recovery, commercial is doing well, and the B/S and FCF are strong so risk/ reward may seem compelling on a multi-year view, less so on our 12-month horizon."
"Our 2012 EPS estimate falls to $2.65, above the high end of LII’s range even on our core sales growth of 2% vs. LII’s 2-6%. We think price tracks ahead of commodities (LII’s price assumption seems conservative), volume offsets mix pressure, and cost saves more than offset higher SG&A. Adding a $0.15 buyback tailwind and $0.12 Kysor deal accretion gets us just above the outlook’s high end."
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 $31.99 yesterday.
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