Lennox International (LII) provided a "clear" playbook for growth, offering multiple levers for top line and margins to exceed targets, Oppenheimer said in a Thursday note following its Investor Day event.
Lennox expects topline market outgrowth through 2030 to be driven among others by rising parts and service attach rates, total addressable market expansion, according to the note.
The company's migration to a replenishment-based distribution model is supporting productivity and revenue targets, the note said, adding that AI integration is also driving driving tangible revenue, cost reduction outcomes.
Oppenheimer analysts raised their fiscal 2027 estimate for revenue growth rate by 100 basis points to reflect stronger volume growth in outlook.
Oppenheimer reiterated its outperform rating on the stock and increased its price target to $645 from $630.
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