Softer Demand For Chemicals Hurts Leslie's Amid Macro Woes, Analyst Lowers Price Target
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey has lowered the price target for Leslie's, Inc. (NASDAQ:LESL) to $8.50 from $11 due to softer demand for chemicals and macroeconomic challenges. Leslie's Q3 preliminary results forecast sales of $611 million, a comparable sales decline of 12%. The company also expects FY23 adjusted EPS of $0.28-$0.32, down from $0.78-$0.86 previously. In response to these trends, Leslie's is reducing its headcount by ~20%, cutting distribution costs, and slowing M&A.
July 14, 2023 | 4:57 pm
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Leslie's, Inc. (NASDAQ:LESL) is facing a lowered price target due to softer demand for chemicals and macroeconomic challenges. The company's Q3 sales and FY23 adjusted EPS are expected to decline. The company is responding by reducing costs and slowing M&A.
The lowered price target, declining sales, and reduced EPS forecast indicate a negative short-term impact on Leslie's stock. The company's cost-cutting measures may mitigate some of this impact, but it's unclear how effective these will be in the short term.
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IMPORTANCE 80
RELEVANCE 100