In a report released today, Nigel Coe from Wolfe Research upgraded Lennox International to a Hold, with a price target of $665.00.
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Nigel Coe has given his Hold rating due to a combination of factors affecting Lennox International. The R-HVAC market is currently experiencing significant noise, with volumes correcting to trough levels. While there are risks related to pricing, inventory, and regulatory changes anticipated in 2026, there are also opportunities for Lennox to gain market share and improve margins, which could offset these risks.
Despite the challenging conditions and an uncertain regulatory environment, Coe believes that the risks are now more balanced with the stock trading at a rare discount. The potential for modest recovery in 2026, along with strategic partnerships and initiatives like the Samsung JV for ductless products and Artison JV for water heaters, could lead to market outperformance. However, the sentiment remains bearish until there is more confidence in volume recovery and favorable housing conditions, justifying the Hold rating.
According to TipRanks, Coe is a 4-star analyst with an average return of 8.4% and a 55.56% success rate. Coe covers the Industrials sector, focusing on stocks such as Fastenal Company, Lennox International, and Otis Worldwide.
In another report released on November 7, Wells Fargo also maintained a Hold rating on the stock with a $545.00 price target.