Leslie's (LESL) PT Lowered to $0.35 at Telsey

Telsey analyst Dana Telsey lowered the price target on Leslie's (NASDAQ: LESL) to $0.35 (from $0.75) while maintaining a Market Perform rating.

The analyst comments "TAG View: As pre-announced on July 28, Leslie's delivered poor 3QF25 results, with a comp decline of 12.4% and a YoY drop in adjusted EBITDA of ~25%. Notably, unfavorably cold and wet weather caused many customers to delay pool openings during the peak season, hurting topline performance, especially in the North, which makes up a large portion of 3Q sales due to peak season demand. Furthermore, the weak environment led to excess inventory levels in the market later in the quarter, causing competitors to slash pricing to clear seasonal products, taking market share from Leslie's. While the dramatic pricing action from competitors is now in the rearview mirror and traffic has improved sequentially for the company so far in 4QF25, Leslie's still expects another significantly down quarter to end the year as broader underlying weakness in demand persists. As a result, the company provided new FY25 guidance that disappointed, calling for adjusted EBITDA to decline 45%-54% YoY to $50MM-$60MM vs. our prior expectation of $64MM."

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