William Blair analyst Ryan Merkel has maintained their bullish stance on LII stock, giving a Buy rating on July 17.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ryan Merkel has given his Buy rating due to a combination of factors including Lennox International’s strong financial performance in the recent quarter. The company reported impressive gross margins and slightly better sales, which contributed to a beat-and-raise quarter. This performance is seen as a reaffirmation of Lennox’s strategy to regain market share and expand margins.
Additionally, the company raised its sales guidance slightly and increased its EPS guidance by 4% at the midpoint, largely due to a strong second quarter. Despite maintaining a conservative outlook for the second half of the year, factors such as improved weather conditions, the end of R410A destocking, and margin upside from continued price/mix adjustments are expected to drive further growth. The increase in residential sales, which offset other declines, and the positive impact of price/mix on both sales and margins further support the Buy rating.
In another report released on July 17, Oppenheimer also maintained a Buy rating on the stock with a $650.00 price target.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LII in relation to earlier this year.