Goldman Sachs Upgrades Trane and Cuts Ratings on Lennox, Carrier

Goldman Sachs upgraded Trane Technologies to Buy from Neutral and downgraded Lennox International and Carrier Global to Neutral from Buy on Oct. 14, reflecting different demand conditions in commercial and residential heating and cooling markets.

The rating changes put the three heating, ventilation and air conditioning manufacturers on separate paths. Goldman’s view favored Trane, while its ratings for Lennox and Carrier moved down one level.

Commercial HVAC demand is benefiting from artificial intelligence data center infrastructure spending and robust demand. Residential markets face weak housing activity and pricing pressure.

Goldman also expects Trane and Johnson Controls earnings to exceed consensus estimates, while it sees Lennox and Carrier earnings below consensus.