Nomura Securities Starts Lennox International (LII) at Buy

Nomura Securities initiates coverage on Lennox International (NYSE: LII) with a Buy rating and a price target of $100.00.

Analyst Jonathan Wright commented, "After a disappointing 2011, LII has strung together three years in which earnings growth has averaged 25%. We think that the drivers of growth - NA residential exposure, share gains, and cost-out initiatives - still have at least a couple of years to run. However, the broader macroeconomic concerns that have weighed on the sector as a whole have caused the shares to underperform in 2014. The announcement of an ASR has helped, but LII’s 20% premium to the market is now closer to parity, implying a deceleration in earnings growth. We initiate on Lennox with a Buy rating and a $100 target price, based on our expectation for continued 20%-plus EPS growth and an associated recovery in the multiple."

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 $91.40 yesterday.

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Vireo Growth completes acquisition of C21 Investments
• Bernstein remains bullish on SpaceX but sees challenges in telecom ambitions