Goldman Sachs analysts upgraded the rating for Lennox (NYSE:LII) from Sell to Buy and set a new price target of $455 per share.
The bank’s rationale for this upgrade is based on several factors. They believe that the residential HVAC (Heating, Ventilation, and Air Conditioning) volumes have likely reached their low point and that advantageous pricing trends related to an upcoming refrigerant change will contribute to stronger growth in 2024.
Furthermore, the analysts anticipate improvements in commercial margins, suggesting that the company’s profitability in this segment is not yet fully realized. They expressed confidence in Lennox’s ability to continue to outperform market expectations.