Update shared on 27 Nov 2025
Analysts have lowered their price target for Leggett & Platt, now expecting $9 per share instead of $10. They cite ongoing soft demand in residential end-markets, although there are some signs of market stabilization.
Analyst Commentary
Analysts have offered a balanced perspective on Leggett & Platt's outlook following recent quarterly results. Their updated insights reflect both cautious optimism and persistent concerns regarding the company’s trajectory.
Bullish Takeaways
- Bullish analysts point to early signs of stabilization in the company’s end-markets. This suggests that headwinds may be easing.
- The company’s raised outlook for the Mattress industry to low single digit declines in 2025 indicates a less negative trajectory and potential for recovery.
- Maintaining a Neutral rating, despite soft demand, reflects some confidence in current valuation and the management’s disciplined approach to market challenges.
Bearish Takeaways
- Analysts remain cautious due to continued soft demand in the residential market, which weighs on near-term earnings potential.
- Lack of a clear inflection in the broader macroeconomic environment continues to hinder confidence in a swift recovery and limits upside potential.
- Choppy market conditions and cautious commentary about leaning into a Bedding recovery highlight execution risks for growth initiatives.
What's in the News
- Leggett & Platt is actively seeking acquisitions, with a strategic focus likely on its textiles business. CFO Benjamin Burns noted the company’s success with modest acquisitions that deliver immediate synergies (Third Quarter 2025 Webcast and Earnings Conference Call).
- The company raised its 2025 full-year earnings guidance, now expecting sales in the range of $4.0 to $4.1 billion and EPS between $1.52 and $1.72. EBIT margin is projected at 8.4% to 9.0% (Corporate Guidance Update).
- Earlier guidance for 2025 was also updated, with EPS expectations increased to $1.43 to $1.72, up from a prior range of $0.88 to $1.17 (Corporate Guidance Update).
Valuation Changes
- Fair Value: Unchanged at $11.00 per share, indicating a stable long-term outlook for intrinsic valuation.
- Discount Rate: Decreased from 12.26% to 11.90%, suggesting a modest reduction in perceived risk or required return.
- Revenue Growth: Remains essentially flat at -0.16%, reflecting no change in the expectation for top-line performance.
- Net Profit Margin: Remains steady at 4.54%, signaling no material adjustment in anticipated profitability.
- Future P/E: Decreased slightly from 11.38x to 11.19x, indicating a small downward revision in future earnings multiple assumptions.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.