The excited Light Blues faithful have been enjoying the refurbishment work carried out by their new manager over the summer.
Gerrard has made 12 new signings since replacing Graeme Murty and Rangers are yet to lose under the Champions League winner.
But Lennon insists it is far too early to say whether the former Liverpool captain has transformed the Ibrox side into genuine title challengers to Celtic after watching them twice limp over the line in third place.
And the Leith boss will not rule out his side, Hearts or Aberdeen - who Hibs welcome to Easter Road on Saturday - pipping Gers to second spot once again.
He said: “I think it’s too early to say if Celtic and Rangers are going to go on and become the top two teams.
“There’s obviously a significant improvement at Rangers - but for me it was not that major a job to do on the back of what wasn’t a great season for them last year.
“They are investing, which is something the likes of ourselves, Aberdeen and Hearts can’t do.
“But on any given day any team can be beaten.
“I still think Celtic will win the league. Whether the gap gets closer remains to be seen.
“Rangers will be firm favourites for second place but I don’t believe in the hype. There is a lot of hysteria around big clubs, not just in Scotland but England and elsewhere.
“But when you sit down and watch the games, you think, ‘Mmm... mmm. Not so sure’.”