Mizuho Securities analyst David Bellinger has reiterated their neutral stance on LESL stock, giving a Hold rating yesterday.
David Bellinger has given his Hold rating due to a combination of factors impacting Leslie’s financial performance and strategic direction. The company reported disappointing Q4 results with a notable 8% decline in total revenue, falling short of market expectations. This was accompanied by a significant contraction in gross margins and a considerable miss on adjusted EBITDA and EPS compared to consensus estimates. These financial challenges were compounded by a reduction in store growth and M&A activity, as the company focuses on debt reduction, further limiting immediate growth prospects.
Despite these setbacks, there are some positive developments, including improved trends into the early weeks of Q1 and strategic initiatives outlined by the new CEO, Jason McDonell. These initiatives aim to enhance customer awareness and optimize asset utilization, reflecting potential for long-term improvement. However, with a lack of full-year guidance and continued margin pressures expected in Q1, the outlook remains cautious. Consequently, Bellinger maintains a neutral stance, awaiting clearer signals of recovery before considering a more optimistic rating.
According to TipRanks, Bellinger is an analyst with an average return of -1.4% and a 59.09% success rate. Bellinger covers the Consumer Cyclical sector, focusing on stocks such as Five Below, CarMax, and Advance Auto Parts.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $3.00 price target.
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Leslie’s (LESL) Company Description:
Leslies Inc is a direct-to-consumer pool and spa care brand offering a comprehensive assortment of more than 30,000 products across chemicals, equipment and parts, cleaning and maintenance equipment, and safety, recreational, and fitness related products. The company offers its products and services for Residential Pool, Residential Spa, Professional Pool, and Commercial Pool consumers.
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