Stifel raises Leslie’s stock target to $0.57, maintains hold rating

On Monday, Stifel analysts updated their financial model for Leslie’s (NASDAQ:LESL) following the company’s second-quarter fiscal year 2025 (F2Q25) earnings report. The firm raised Leslie’s price target to $0.57 from the previous $0.57, while keeping a Hold rating on the stock. According to InvestingPro data, Leslie’s stock currently trades at $0.73, having experienced significant volatility with a 52-week range of $0.51 to $6.02.

The analysts noted that, despite maintaining the full-year 2025 (FY25) earnings before interest, taxes, depreciation, and amortization (EBITDA) at the lower end of the company’s guidance, they are approaching their outlook with added caution. Leslie’s F2Q25 performance did not meet Stifel’s expectations, with revenue falling below the range provided in February and EBITDA hitting the low end of the guidance. InvestingPro analysis shows the company’s last twelve months revenue at $1.32 billion, with an EBITDA of $80.19 million.

Furthermore, Leslie’s indicated that it still has 70% of its third-quarter fiscal year 2025 (F3Q25) sales volume to come despite being almost 50% through the quarter in terms of number of days. Despite this, Stifel analysts expressed concerns about the stock’s potential volatility. They pointed out that Leslie’s modest outperformance on Friday, where the stock rose by 4.7% compared to a flat performance by the S&P 500, could be attributed to current market inefficiencies and limited investor focus. The firm highlighted that Leslie’s market capitalization represents only 16% of its enterprise value.

The updated price target reflects Stifel’s revised expectations based on the company’s latest financial results and market outlook. Leslie’s stock performance and the company’s ability to meet its FY25 guidance will continue to be closely monitored by investors and analysts alike. InvestingPro analysis indicates the company is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides detailed analysis of Leslie’s financial health and future prospects.

In other recent news, Leslie’s Inc. reported its financial results for the second quarter of 2025, showing a decline in both earnings and revenue. The company posted an earnings per share (EPS) of -$0.25, slightly missing the forecasted -$0.24. Revenue came in at $177.1 million, which was below the anticipated $184.88 million, marking a 6% year-over-year decrease. Gross profit and margin also saw a significant decline, with gross profit dropping to $43.9 million from $54.3 million the previous year. Despite these challenges, Leslie’s reaffirmed its full-year guidance, indicating confidence in its strategic initiatives.

In other developments, Telsey Advisory Group adjusted its outlook on Leslie’s shares, reducing the price target from $3.00 to $1.25 while maintaining a Market Perform rating. The adjustment reflects ongoing challenges in the macroeconomic environment and uncertain trends as the pool season approaches. Analysts at Telsey expressed cautious optimism about Leslie’s strategic initiatives but noted the lack of clear indicators of market recovery and consistent top-line growth. They applied a 7.5x EV/EBITDA multiple to the updated fiscal year 2026 adjusted EBITDA projection of $131 million for the revised price target.

Leslie’s management highlighted ongoing efforts to strengthen the company’s Pro segment and enhance its omnichannel strategy, despite the challenging market conditions. The company is also focused on debt reduction and inventory optimization as it prepares for the peak pool season. Additionally, Leslie’s announced a new same-day delivery partnership with Uber, aimed at improving customer service and convenience.

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