The last time Lennox International's EBIT was this low in Q1, the company did $515M in EBIT suggesting $2.05 in downside to the company's standing earnings per share guidance range of $11.30-11.90, JPMorgan analyst Stephen Tusa tells investors in a research note. Further, normal seasonality suggests earnings per share of less than $10, contends the analyst. Tusa takes the "middle of the road" and comes to an $11.10 earnings per share estimate for 2020. He believes that without a guidance reset, and with longer term headwinds on cycle and company specific market outgrowth potential, the shares are likely to see a continued "de-rating." The analyst maintains an Underweight rating on Lennox with a $200 price target.

Wells Fargo analyst Joseph O'Dea lowered the firm's price target on Lennox to $520 from $545 and keeps an Overweight rating on the shares. A solid Q1 and full year raise still saw Lennox's stock down 2% vs. XLI down 80bps, the firm says. Wells thinks a lighter potential R454B tailwind in 2025 and M&A uncertainty overhang are two reasons. In the firm's view, growth potential remains compelling.

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