Deutsche Bank analyst Nicole DeBlase initiated coverage of both Ingersoll-Rand (IR) and Lennox International (LII) with Hold ratings. The residential heating, ventilation, and air conditioning upcycle can continue for at least two more years, DeBlase tells investors in a research note, citing her proprietary industry demand model as well as recent management commentary. The analyst sees 15% upside to residential HVAC demand through 2020, which she believes should benefit all industry participants. On the Commercial side of the market, DeBlase expect low- to mid-single digit growth over the next several years.

Consensus $19.72. Backs FY24 revenue up 7%, consensus $5.12B. Sees FY24 free cash flow $500M-$600M.