KeyBanc Upgrades Lennox International (LII) to Buy

KeyBanc upgraded Lennox International (NYSE: LII) from Hold to Buy with a price target of $100.00.

Analyst Jeffrey D. Hammond said, "We are upgrading LII to BUY (from HOLD) and initiating a $100 price target based on the confluence of: 1) favorable end market conditions, including an emerging non-residential construction recovery and continued support from residential construction (both new and replacement driven); 2) clear evidence of persisting share gains in its Residential Heating & Cooling business (i.e., Parts Plus, New Products) and its Commercial Heating & Cooling Business (i.e., Raider emergency replacement roll-out, National Account Wins); 3) continued runway of margin enhancement opportunities (i.e., Mexico plant expansion, material cost savings initiatives); and 4) a capital allocation strategy primarily focused on returning cash to shareholders ($150 million buyback; 25% dividend increase – 1.4% yield). The aforementioned catalysts, coupled with a recent pull back in its share price, should support out performance and a premium valuation going forward."

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 $87.88 yesterday.

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