Oppenheimer downgrades Lennox as costs and rivals delay earnings recovery
Oppenheimer cut its Lennox International rating to Perform and lowered its outlook after weak third-quarter results. According to Seeking Alpha, the recovery could stretch into 2028.
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what happened
According to Seeking Alpha, Oppenheimer analyst Noah Kaye lowered his rating on Lennox International to Perform from Outperform. He argues that rising costs, tougher competition and pressure on consumer budgets could push back the earnings recovery for the heating and cooling equipment maker into 2027. He also withdrew his previous $548 price target.
The move follows weak third-quarter results: adjusted earnings of $6.84 a share missed the $7.34 consensus, and full-year adjusted guidance was cut to $21 to $21.50 a share from $23 to $24. Revenue rose 10% to $1.57 billion. Kaye now expects earnings to return to the 2025 level of $23.16 a share only in 2028.
Lennox plans to win back market share with a lower-priced product line due in the first quarter of 2027.
why it matters
The note matters beyond one stock as a sign of pressure across the HVAC sector, where higher production costs and cheaper foreign rivals limit how far companies can raise prices. The shares closed at $332.64 on October 28.
market impact
LII: weaker profit outlook on costs and competition weighs on the shares
tags
instruments
sources
- Lennox downgraded at Oppenheimer as inflation, competition delay recovery — Seeking Alpha, 29 October 2026 at 16:51 UTC
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