Leggett & Platt (LEG): Evaluating Value Potential Following New Mattress Tariffs and Shifting Analyst Sentiment

Leggett & Platt, a longstanding player in the home and commercial furnishings space, is back in the spotlight following the latest enforcement of tariffs on imported mattresses and parts. For investors, these new trade measures could mean a real shift in prospects as domestic producers like Leggett & Platt look to bounce back in the face of persistent sales sluggishness and tight margins.

See our latest analysis for Leggett & Platt.

Leggett & Platt’s share price has taken a hit lately, reflecting both persistent operational headwinds and the cautious optimism sparked by trade policy shifts. The stock is trading at $8.56, with a 1-month share price return of -10.9% and a steep 1-year total shareholder return of -31.5%. This underscores that momentum remains weak even as tariff news stirs fresh interest in a potential turnaround.

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With shares at a deep discount to recent analyst targets and fresh tariff support on the table, is Leggett & Platt’s value story just beginning? Or are investors already pricing in every bit of future growth?

Most Popular Narrative: 11% Undervalued

Leggett & Platt is currently priced at $8.56, with the most-followed narrative suggesting fair value is closer to $9.67. This sets the stage for a potential value opportunity if the narrative’s assumptions come to fruition.

The company's restructuring plan is nearly complete, delivering increased operational efficiency, reduced SG&A, improved margins, and lower debt. As operational cost savings become fully embedded in the cost structure going forward, normalized volumes should generate higher incremental earnings and expanded net margins.

Read the complete narrative.

Curious about the calculations that power this verdict? This narrative leans on multiple levers such as profit, revenue, margin expansion, and a notable assumption about future multiples. Which single metric could be driving the case for a move higher? There is one stand-out figure you will want to uncover before you decide your own fair value.

Result: Fair Value of $9.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weak demand in bedding and ongoing pricing pressures could quickly undermine Leggett & Platt’s anticipated rebound and test this bullish narrative.

Find out about the key risks to this Leggett & Platt narrative.

Build Your Own Leggett & Platt Narrative

If you want to dig into the numbers yourself or put forward a different story, you can put together your own view in under three minutes, Do it your way

A great starting point for your Leggett & Platt research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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