Wells cuts Lennox to Underweight on higher uncertainty, lower relative valuation

As previously reported, Wells Fargo analyst Joseph O’Dea downgraded Lennox (LII) to Underweight from Equal Weight with a price target of $580, down from $630. The firm sees elevated uncertainty in 2025 on A2L price realization, potential share pressure, and not only pre-buy headwinds in Q1, but also tough Q4 comps on both volume and margins. The challenge is with elevated uncertainty and potential preference to wait for better clarity closer to 2026, there’s more relative valuation compression risk than expansion, Wells argues.