Morgan Stanley Cuts LII Price Target to $350

Morgan Stanley has reiterated its Underweight rating on Lennox International, lowering the price target to $350, a 2.31% downside from the current price.

By TradeTexts Research Desk · Published Oct 16, 2026, 2:29 PM EDT

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Morgan Stanley cut its price target on Lennox International Inc. ($LII) to $350 from $375 on October 15, 2026, and rates the stock "Underweight".

Since the rating, $LII is down 0.2% to date (from the $358.50 close on Oct 15, 2026).

LII Lennox International Inc.

$357.73 -27.64% year to date

Daily close · Oct 16, 2026

Key Points

Morgan Stanley reiterated its Underweight rating on Lennox International Inc. (NYSE: LII) on October 15, 2026, reducing the price target from $375 to $350.
Morgan Stanley's $350 price target implies 2.31% downside from Lennox International Inc.'s ($LII) current $358.26 share price.
The stock was trading at $358.26 on the day of publication, near its 52-week low of $350.22 and well below its high of $587.27.
Lennox has a market cap of about $12.57 billion and a P/E ratio of 16.15, reflecting its moderate valuation in the building products sector.

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Morgan Stanley has reiterated its Underweight rating on Lennox International Inc. (NYSE: LII) on October 15, 2026. The firm lowered its price target from $375 to $350. The stock closed at $358.26 on the publication day, reflecting changing analyst sentiment toward the company.

Analyst rating track record

Morgan Stanley vs. the S&P 500

YTD return +0.86% hypothetical

All-time return +0.86% S&P 500 +0.57%

vs. S&P 500 +0.29% ahead of the index

Hypothetical returns from Morgan Stanley's disclosed trades, not real profit or advice. How we model this.

Morgan Stanley's Call on Lennox International

Morgan Stanley maintains its Underweight rating on Lennox International. With the revised target of $350, it indicates a cautious approach regarding the company's near-term performance. This change comes as analysts reassess their projections for the company in a competitive market.

Other Institutional Activity in Lennox International

Several institutional investors have adjusted their stakes in Lennox recently. Blackrock Inc. grew its holdings by 3,863 shares, bringing its total to 2,975,559 shares valued at approximately $1.07 billion. Vanguard Capital Management LLC added 3,082 shares, increasing its position to 2,057,463 shares worth about $736 million. However, Capital International Investors reduced its stake by 380,143 shares, holding 2,482,381 shares valued at around $889 million.

Lennox International Inc. Stock Down 0.3%

Currently, Lennox International's stock trades at $358.26, which is near its 52-week low of $350.22. The stock has seen a significant range in the past year, with a high of $587.27. This recent analyst downgrade reflects ongoing challenges in the market and investor caution around future performance.

12-month forecast

$LII price target

Lennox International Inc. daily closes and this analyst's $350 target. Not advice.

Recent Earnings

In its most recent earnings report, Lennox International posted revenue of approximately $5.3 billion, with a net margin of 14.87%. The company is expected to report its next earnings on October 28, 2026. The earnings performance will be closely watched as analysts evaluate the impact of market conditions on the company’s profitability.

Insider Buying and Selling at Lennox International Inc.

Recent insider activity shows that several executives have sold shares of Lennox. For example, Officer Chris A. Kosel sold 971 shares on May 6, 2026, at an average price of $544.80, totaling about $529,001. Director Shane D. Wall sold 100 shares on February 25, 2026, at $540.01, amounting to $54,001. Such sales are notable as they may reflect insider sentiment about the company's future prospects.

Analysts Set New Price Targets

On October 15, 2026, Morgan Stanley maintained its Underweight rating on Lennox International with a revised target of $350. Mizuho also maintained a Neutral rating, lowering its target from $450 to $395. Meanwhile, Goldman Sachs downgraded its rating to Neutral with a new target of $390, down from $547. The consensus among analysts is that Lennox International has some challenges ahead.

About Lennox International

Lennox International Inc. designs and manufactures products for heating, ventilation, air conditioning, and refrigeration. It operates primarily in the U.S. and Canada, serving both residential and commercial markets. As it navigates a shifting economic landscape, the company must adapt to changing demands in the building products industry.

Bottom Line

Looking ahead, market watchers will be keen to see how Lennox performs in its upcoming earnings report on October 28, 2026. Morgan Stanley's backward-looking rating reflects the firm's cautious view on Lennox's stock, which may impact investor sentiment in the near term.