Leggett and Platt (LEG) PT Lowered to $13 at Piper Sandler

Piper Sandler analyst Peter Keith lowered the price target on Leggett and Platt (NYSE: LEG) to $13.00 (from $16.00) while maintaining a Underweight rating.

The analyst commented, "We are reducing our PT to $13 (10x 2025E EPS) following Q1 results which saw a slight EPS miss, reiteration of full year guidance, and a significant cut (90%) to LEG’s dividend. While the dividend cut is not surprising to us (see March 12 note), it is a notable event as LEG had raised its dividend for 51 consecutive years. For the quarter, revenue also missed slightly as all 3 business segments saw deterioration in sales and unit volume declines vs. Q4. While Q1 was a challenged quarter for big ticket consumer durables, both our Mattress and Furniture retailer surveys saw Q1 industry sales declines similar to Q4 – suggesting ongoing share loss for LEG. For our PT, we reduce our EPS multiple assumption to 10x 2025E (from 14x 2024E) following the dividend cut. LEG’s earnings call is scheduled for 8:30 am ET tomorrow morning. We may refine our model estimates post-call. "

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• SanDisk upgraded at JPMorgan after investor day; shares climb