Goldman Sachs downgrades Lennox International to Neutral and cuts price target to $390
Goldman Sachs lowered its rating on Lennox International (LII) from Buy to Neutral, citing weaker-than-expected residential HVAC demand and heightened competition. The analyst reduced the price target from $547 to $390 and highlighted earnings risk for 2027. Lennox reported mixed Q2 2026 results, beating adjusted earnings expectations but missing revenue forecasts, prompting a downward revision of its full‑year profit outlook.
Why it matters
The downgrade and target cut signal lower near‑term expectations, which could pressure LII’s share price. Goldman Sachs also warned of earnings risk in 2027, suggesting investors should reassess valuation assumptions.
Key facts
- 1Goldman Sachs downgraded Lennox International to Neutral from Buy and lowered its price target to $390 from $547. investing.com
- 2Lennox’s stock was trading at $350, near its 52‑week low of $340 and down 40% from its 52‑week high of $587. investing.com
- 3Adjusted earnings for Q2 2026 were $7.72 per share, beating the forecast of $7.61 per share. investing.com
- 4Revenue for Q2 2026 grew 3% to $1.5 billion, missing the anticipated $1.56 billion. investing.com
- 5Goldman Sachs cited earnings risk for 2027, estimating it 3% below consensus. investing.com
- 6The stock fell 1.85% on the day of the downgrade and is down 27.89% year‑to‑date. marketscreener.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.