Wells Fargo analyst Joe O’Dea has maintained their bearish stance on LII stock, giving a Sell rating on April 8.
Joe O’Dea has given his Sell rating due to a combination of factors affecting Lennox International’s future performance. Despite a promising setup for the first quarter, there are significant uncertainties looming for the rest of the year. These include potential overhang from pre-buy activities, risks related to consumer confidence, and the impact of tariffs on China, all of which could negatively influence the company’s performance.
Furthermore, while the company might experience a strong first quarter, the outlook for the latter half of the year is less optimistic. Revenue projections suggest a decline in shipments and a potential decrease in earnings, particularly in the third and fourth quarters. The company’s valuation, while currently at a premium compared to its peers, may not be sustainable given these challenges. As a result, O’Dea maintains a cautious stance with a Sell rating and a price target of $550.
O’Dea covers the Industrials sector, focusing on stocks such as 3M, Eaton, and Emerson Electric Company. According to TipRanks, O’Dea has an average return of 7.3% and a 54.45% success rate on recommended stocks.
In another report released on April 8, J.P. Morgan also maintained a Sell rating on the stock with a $455.00 price target.