Leslie’s stock price target lowered to $0.75 from $1.00 at Loop Capital

Investing.com - Loop Capital has reduced its price target on Leslie’s (NASDAQ:LESL) to $0.75 from $1.00 while maintaining a Hold rating on the stock. The swimming pool supplies retailer has seen its shares plummet 77.9% over the past year, with the stock currently trading at $0.64.

The price target reduction follows Leslie’s negative preannouncement of its third-quarter 2025 earnings and the withdrawal of its full-year guidance. The company plans to announce its final third-quarter results on August 6. According to InvestingPro data, four analysts have recently revised their earnings estimates downward, while revenue has declined 6.1% over the last twelve months.

Loop Capital cited "limited visibility to an industry recovery" as one factor behind its cautious stance on the swimming pool supplies retailer.

The research firm also expressed concerns about "questions regarding the company’s share position and execution" in its analysis of Leslie’s current market situation.

Loop Capital further noted that Leslie’s balance sheet is "overly levered," making the shares "difficult to recommend at this time."

In other recent news, Leslie’s, Inc. reported a 12% decline in net sales for the preliminary third quarter of fiscal 2025, with sales totaling approximately $500 million. The company attributed this decline to unfavorable weather conditions that delayed pool openings. Preliminary net income is estimated between $20 million and $22 million, with adjusted EBITDA projected between $79 million and $82 million. Telsey Advisory Group has responded by lowering Leslie’s stock price target to $0.75, citing weak sales and maintaining a Market Perform rating. Mizuho (NYSE:MFG) also reduced its price target for the company to $1.00, highlighting ongoing margin pressures and adjusting its fiscal year 2025 EBITDA estimate to $98 million. In addition, S&P Global Ratings downgraded Leslie’s issuer credit rating from ’B’ to ’B-’, reflecting weaker business prospects and anticipated operating challenges. The company also announced the appointment of Amy College as the new Chief Merchandising and Supply Chain Officer, effective July 20, 2025. College will oversee various aspects of the business, including merchandising, inventory, and the digital marketplace.

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