How Recent Developments Are Reshaping the Leslie’s Investment Story
November 2, 2025
Leslie’s stock narrative has seen a notable shift as the consensus analyst price target has dropped from $11.57 to $9.34. This reflects a more cautious stance on valuation. Despite the unchanged discount rate, this adjustment signals increasing skepticism about near-term prospects amid ongoing market uncertainties. Stay tuned to see how investors and observers can stay ahead of further narrative changes in the evolving landscape around Leslie’s outlook.
Stay updated as the Fair Value for Leslie’s shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Leslie’s.
Recent analyst commentary on Leslie’s has reflected a broad reassessment of the company’s prospects, with several firms highlighting both achievements and challenges in the current climate.
🐂 Bullish Takeaways
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Telsey Advisory notes the strategic efforts delivered by Leslie’s leadership team, indicating that management’s execution and decision-making are viewed positively within parts of the analyst community.
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Analysts across several firms, while not explicitly bullish, maintain neutral-weighted ratings. This suggests some confidence in Leslie’s ability to navigate near-term headwinds and rewards the company for its transparency and operational focus.
🐻 Bearish Takeaways
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Mizuho’s David Bellinger lowered the price target on Leslie’s from $20 to $5. This reflects a marked reduction in forward-looking expectations as a result of recent earnings and updated company guidance.
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Morgan Stanley, led by Simeon Gutman, also adjusted its price target from $0.60 to $7 following the reverse stock split, maintaining an Equal Weight rating and citing ongoing concerns about market share losses, competitive pressures, and a weak macroeconomic backdrop.
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Telsey Advisory revised its target from $0.75 to $0.35, maintaining a Market Perform rating and expressing reservations about weak near-term trends, despite approving of leadership’s strategy.
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Common themes among bearish analysts include heightened concerns about valuation, persistent downside risks, and a lack of near-term positive catalysts for the stock.
Collectively, the Street’s caution underscores continued scrutiny over Leslie’s valuation and execution capabilities. The consensus leans more conservative amid ongoing market challenges.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
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Leslie’s has engaged Centerview Partners and Kirkland & Ellis to advise on strengthening its balance sheet in response to weaker sales. This led to a 12 percent rise in its share price during afternoon trading.
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The company filed a certificate of amendment on September 26, 2025, to enact a 1-for-20 reverse stock split and reduce its authorized shares. Trading on a split-adjusted basis is set to begin on September 29, 2025.
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Jeff White has been appointed as Chief Financial Officer, effective October 5, 2025. He brings prior experience from Sportsmans Warehouse and KPMG LLP.
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Leslie’s updated its fiscal year 2025 guidance, projecting total sales between $1.210 billion and $1.235 billion and a net loss ranging from $57 million to $65 million.
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Consensus Analyst Price Target has declined significantly from $11.57 to $9.34. This reflects a more cautious valuation outlook.
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Discount Rate remains unchanged at 12.32%, which indicates that analysts are applying consistent risk assumptions.
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Revenue Growth forecasts have dropped from 0.76% to 0.57%, signaling lower expectations for top line expansion.
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Net Profit Margin has risen slightly from 4.69% to 4.80%, suggesting a marginal improvement in profitability projections.
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Future P/E ratio has fallen from 2.46x to 1.95x. This points to lower valuation multiples amid reduced earnings expectations.
Narratives are a powerful way to connect a company’s story to its financial forecast and fair value. Think of a Narrative as an investor’s viewpoint, where numbers meet real-world events. On Simply Wall St’s Community page, millions of investors use Narratives to see how new news or earnings instantly update the story. This process helps you decide whether to buy or sell by comparing Fair Value with the current Price, all in one place.
Follow the original Leslie’s Narrative to stay on top of the latest shifts, including:
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Why market expansion and warmer climate trends could support Leslie’s long-term sales and recurring revenue growth.
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How omnichannel convenience and cost optimization programs are expected to drive operating efficiencies and help restore profitability.
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What elevated competition, debt levels, and unpredictable weather might mean for Leslie’s ability to regain sustainable growth and improve valuations.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LESL.
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