Lennox price target raised to $481 from $414 at RBC Capital

RBC Capital analyst Deane Dray raised the firm’s price target on Lennox to $481 from $414 but keeps a Sector Perform rating on the shares. Lennox has an outsized 70% revenue exposure to residential markets, the highest in the Multi-Industry sector, the analyst tells investors in a research note. Hhigher mortgage rates are likely to put pressure on new construction markets, while replacement demand from the housing boom in the mid-2000s is bumping into the 17-year average life of resi HVAC systems, which could lead to reduced replacement demand, the firm added.