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On Monday, Jefferies analyst Philip Ng revised the price target for JELD-WEN (NYSE:JELD) Holding, Inc. (NYSE: JELD) stock, lowering it to $3.75 from the previous target of $5.50. Despite this adjustment, the firm maintained its Hold rating on the shares of the window and door manufacturer. The stock, currently trading at $4.03, has experienced a significant decline of 74% over the past year, according to InvestingPro data.
The revision comes amidst concerns regarding the company’s financial health. Ng pointed out that while JELD-WEN is actively working to decrease its expenses and invest in automation to improve efficiency, the company is experiencing financial strain due to the current demand environment. This situation is leading to increased leverage, which is anticipated to reach eight times by the end of the fiscal year. InvestingPro data reveals a concerning debt-to-equity ratio of 2.91 and negative free cash flow of -$134 million in the last twelve months, supporting these concerns. The platform’s Financial Health Score indicates a WEAK overall rating.
The analyst’s statement highlighted the uncertainty surrounding JELD-WEN’s future, noting the absence of a significant recovery by 2026. This raises questions about the company’s ability to maintain its current structure. Ng’s commentary reflects a cautious outlook on JELD-WEN’s operational and financial trajectory in the face of current market conditions.
The price target adjustment by Jefferies signals to investors that while JELD-WEN is taking steps to address its challenges, there remain substantial concerns about its leverage and the demand landscape it operates within.
JELD-WEN’s efforts to streamline operations and implement technological advancements are crucial strategies as the company navigates through a period of financial stress. The new price target from Jefferies serves as an indicator of the hurdles the company faces and the analyst’s measured expectations for its performance. For investors seeking deeper insights, InvestingPro offers an extensive analysis with 20 additional ProTips and a comprehensive Pro Research Report, providing crucial intelligence for navigating JELD-WEN’s challenging financial landscape.
In other recent news, Jeld-Wen Holding Inc. reported its Q1 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of -0.17, slightly beating the forecasted -0.19. Revenue came in at $776 million, surpassing the expected $769.25 million, although this represented a 19% decline from the previous year. Despite these minor beats, the company withdrew its full-year guidance due to market uncertainty. Jeld-Wen is undertaking significant operational restructuring and cost-saving initiatives to navigate the challenging macroeconomic environment. The company’s North American segment saw a 22% drop in revenue, while the European segment faced a 12% decline. Analysts from firms like UBS and Jefferies have been closely monitoring Jeld-Wen’s strategies, including its efforts to pass on a $30 million tariff impact to customers. The company remains focused on transformation projects, aiming for $100 million in ongoing benefits.
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