William Blair upgraded Lennox yesterday, sees 19% upside to $390

As previously reported yesterday morning, William Blair analyst Ryan Merkel upgraded Lennox to Outperform from Market Perform, seeing 19% share upside to $390. The analyst sees upside to estimates on a commercial margin recovery, price/cost lift in 2024, and heating, ventilation, and air conditioning industry regulations. The stock’s valuation will expand as upside to margins and the positive impact from industry regulations to price, mix, and the replacement rate become better appreciated, the analyst told investors in a research note.