Jefferies trims Lennox, Trane PT over softer residential HVAC demand

Lennox International

12/09/2025 12:58

** Jefferies lowers PT on Lennox LII.N and Trane Technologies 2IS.F, citing weaker-than-expected residential HVAC demand in second half of 2025 due to excess inventory and macroeconomic softness

** Brokerage cuts Lennox PT to $645 from $665; the new PT shows a 13.7% upside to the stock's last close

** Cuts Trane's PT to $440 from $450, implying a 6% premium from the last close

** Reiterates rating at "hold" on both stocks

** Trane now expects Q3 residential sales to fall around 20%, while Lennox also sees soft demand, though its in-house distribution is helping cushion the impact- Jefferies

** Brokerage lowers its 2025 EPS forecast for Lennox to $22.85 from $24, and for Trane to $12.70 from $13.05

 ** S&P 400 Industrials (sector) .SPMDCI up 11.3% YTD

 (Reporting by Apratim Sarkar)

 ((Apratim.Sarkar@thomsonreuters.com))