On Wednesday, TD Cowen exhibited confidence in Lennox International (NYSE:LII), a leading provider of climate control solutions, by raising its price target on the company's stock. The new target is set at $505, an increase from the previous $450, while the firm retained an Outperform rating on the shares.
The adjustment came after TD Cowen analysts held meetings with Lennox's CEO, Alok Maskara, and CFO, Michael Quenzer. The insights gained from these discussions led to the revised price target, which is now approximately 19.0 times the expected calendar year 2024 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).
TD Cowen does not anticipate a change in the company's 2024 guidance with the upcoming first-quarter earnings report. The first quarter is traditionally seen as a "low discovery" period, contributing a minor percentage to the annual earnings per share (EPS). Factors such as summer weather play a significant role in the company's performance, but these elements are currently unpredictable, said the analyst.
InvestingPro Insights
Lennox International's (NYSE:LII) recent recognition by TD Cowen with an increased price target to $505 reflects the company's strong market position and potential for growth. In line with this optimistic outlook, InvestingPro provides additional insights that could be valuable for investors considering LII's stock.
InvestingPro data reveals that Lennox International has a market capitalization of $16.81 billion, and is trading with a Price/Earnings (P/E) ratio of 28.39, which is slightly adjusted to 26.57 when considering the last twelve months as of Q4 2023. This indicates a premium valuation relative to near-term earnings growth, with a PEG ratio for the same period standing at 1.49. The company's Price/Book ratio as of the last quarter of 2023 is notably high at 58.92, suggesting that the stock may be valued richly in terms of its net asset value.
An InvestingPro Tip highlights that Lennox International has raised its dividend for 14 consecutive years and has maintained dividend payments for 25 consecutive years. This consistency in rewarding shareholders is a testament to the company's financial stability and commitment to returning value. Additionally, the company has seen a significant price uptick over the last six months, with a 25.07% total return, reinforcing the positive sentiment expressed by TD Cowen.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, there are 12 more tips available for Lennox International, which can be accessed through InvestingPro's platform. These tips can provide deeper insights into the company's financial health and market performance. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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