keybanc capital markets analyst jeffrey d hammond upgraded the rating of lennox international inc lii to overweight from sector weight with a price target of 355 the analyst applauds lennox internationals pricing strategies focusing on decentralized approaches to win in the local market and improve pricing on its national accounts business the company gives more weight to regional managers to more adeptly manage pricing at local levels the analyst notes the companys focus on distribution to become more of a profit center is likely to bolster growth ahead the analyst notes mentioning improved utilization of its distribution footprint that will drive nonequipment sales through its channel further the companys directtodealer model is expected to remain more insulated than peers from destocking pressures 80 resl sales through companyowned distribution these apart hammond forecasts ample runway for improved factory efficiency as lennox international reenters the emergency replacement market the move highlights a clear line of sight to 100m ebit improvement providing meaningful earnings tailwinds lennox international will also gain from incremental capacity in mexico that will boost outgrowth and margins on the commercial front the company has repriced some backlog and taken incremental prices significantly contributing to margins moving forward hammond notes overall the analyst maintains a 2023 eps estimate of 1530 and a 2024 eps estimate of 1685 the analyst expects formal guidance to move higher following 2q23 earnings and see an upside to consensus numbers price action lii shares are trading higher by 025 at 30415 on the last check monday