- Barclays analyst Julian Mitchell reiterated an Equal-Weight rating on the shares of Lennox International Inc (NYSE:LII) and raised the price target from $228 to $240.
- The company had set its long-term financial targets for 2026 and guided FY23.
- The analyst lowered the near-term EPS estimate amidst a more challenging Residential demand backdrop. The commentary on the 2024-2026 Outlook and the implied 2023 cash headwinds was more notable.
- The analyst noted that the Residential heating, ventilation, air conditioning (HVAC) market now looks likely to re-couple lower with broader Residential products.
- LII’s guide implies free cash flow conversion remains ~60% in 2023, after ~60% in 2022, due to headwinds of higher capex and working capital.
- The company emphasized that some cost items were bigger headwinds / smaller tailwinds in the 1H23 than in the 2H.
- The analyst estimates Q1 is worth 15% of FY23 EPS, slightly lower than normal.
- UBS analyst Damian Karas reiterated a Neutral rating on the company’s shares and raised the price target from $255 to $265.
- The analyst said the investor day, the first led by CEO Alok Maskara, saw the company initiate achievable guidance for 2023, shake up the financial targets, and introduce a bullish 10-year market outlook.
- While the EPS guide was in-line with expectations, the analyst thinks inferred margin expansion fell short, and commercial growth beat. Also, free cash flow appeared lower for longer than expected, the analyst added.
- Price Action: LII shares are trading lower by 4.66% at $246.69 on the last check Thursday.
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Rayonier Advanced Materials And 2 Other Stocks Under $5 Insiders Are Aggressively Buying
The Dow Jones closed lower by around 50 points on Tuesday. When insiders purchase or sell shares, it indicates their confidence or concern around the company's prospects. Investors and traders interested in penny stocks can consider this a factor in their overall investment or trading decision.
