Update shared on 16 Nov 2025
Analysts have lowered their price targets for Leslie's, citing recent earnings results, updated guidance, market share losses, and challenging retail conditions. Targets have dropped significantly from levels such as $20 to $5 and $0.60 to $7 following a reverse stock split.
Analyst Commentary
Bullish Takeaways- Analysts maintain a Neutral or Equal Weight stance even after significant reductions in price targets. This indicates a balanced view on potential downside risk at current levels.
- Core margin and comparable sales estimates remain unchanged following the reverse stock split. This suggests that fundamentals are not viewed as rapidly deteriorating.
- Some believe the new valuation multiple is appropriate for the current competitive environment. This implies relative stability if market conditions do not worsen.
- Price targets have been sharply reduced in response to disappointing earnings, updated guidance, and challenging market dynamics. This signals waning confidence in near-term growth prospects.
- Concerns have been expressed over continued market share losses, which may impact Leslie's longer-term competitive positioning and ability to regain momentum.
- Macro headwinds and increased competition are causing analysts to lower their target multiples. This reflects uncertainty about Leslie's execution and recovery path.
- Recent structural changes, such as the reverse stock split, have prompted a reevaluation of valuation frameworks among several analysts.
What's in the News
- Leslie's has hired Centerview Partners and Kirkland & Ellis to help explore ways to strengthen its balance sheet, as reported amid weakening sales (Bloomberg).
- On September 26, 2025, Leslie's effected a 1-for-20 reverse stock split, which also decreased the number of authorized common shares. The adjustment will impact trading on the Nasdaq Capital Market starting September 29, 2025.
- Leslie's board appointed Jeff White as chief financial officer, effective October 5, 2025. Mr. White most recently served as CFO of Sportsman's Warehouse and brings extensive operational and financial expertise.
- Leslie's announced its removal from the S&P Global BMI Index.
- The company called a special shareholder meeting in September 2025 to approve amendments allowing the board to determine the timing and ratio of a reverse stock split.
Valuation Changes
- Fair Value Estimate remains unchanged at $9.34.
- Discount Rate has risen slightly, increasing from 12.32% to 12.5%.
- Revenue Growth projection is virtually flat, staying at 0.57%.
- Net Profit Margin has declined modestly, moving from 4.80% to 4.74%.
- Future P/E Ratio has risen slightly, from 1.95x to 1.99x.
Disclaimer
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