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Investing.com - Mizuho (NYSE:MFG) raised its price target on Lennox International (NYSE:LII) to $650.00 from $595.00 on Thursday, while maintaining a Neutral rating on the HVAC manufacturer’s stock. The company, currently valued at $23.45 billion, has seen its shares surge 8% in the past week. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with technical indicators suggesting overbought conditions.
The price target increase follows what Mizuho described as a "sizable" second-quarter earnings beat and raised guidance, driven by strong price and product mix performance. InvestingPro data shows that 7 analysts have revised their earnings upwards for the upcoming period, with the company expected to achieve earnings per share of $23.02 in FY2025. The firm noted that Lennox’s second-half implied volume is expected to be down approximately double digits against tough pre-buy comparisons.
Mizuho highlighted that Lennox’s 2025 volume guidance was lifted in the Home Comfort Solutions segment but reduced in the Building Climate Solutions division. The R454B refrigerant transition is progressing well and remains on track, though some market share gained last year is expected to be given back.
The firm also pointed out that inventory normalization is anticipated to occur in the second half of the year, while new water heater product introductions are planned for 2026.
Mizuho revised its earnings per share estimates for Lennox to $23.60 for 2025 (up from $22.50) and to $25.20 for 2026 (up from $24.45), citing improving factory productivity as a key factor.
In other recent news, Lennox International reported impressive second-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share of $7.82, which was higher than the projected $6.86, resulting in a 13.99% surprise. Additionally, Lennox’s revenue reached $1.5 billion, exceeding the anticipated $1.47 billion. Following these results, Lennox raised its full-year guidance, signaling strong business momentum. In response to these positive developments, Oppenheimer increased its price target for Lennox International to $730 from $650, while maintaining an Outperform rating. These recent updates reflect investor confidence in Lennox’s robust performance and future prospects.
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