Analyst Explains the Decline in Leggett & Platt Stock due to Lowered Price Target
Why this analyst just lowered his price target on Leggett & Platt
In a note to clients earlier today, Piper Sandler analyst Peter Keith reduced the firm's per-share price target on Leggett & Platt to $16 from $18 and reiterated his underweight rating on the stock.
What's next for Leggett & Platt investors?
Indeed, the timing of the call is no coincidence; shares plunged last month after Leggett & Platt announced weaker-than-expected quarterly results.
Management at the time called it 'another challenging year for residential end markets,' pointing to weak demand for the company's bedding products and furniture, flooring, and textile products segments.
Leggett & Platt also announced a restructuring of the bedding products segment that will result in $20 million to $25 million of restructuring-related expenses in the first half of this year -- though it should help bolster the company's profitability over the longer term.
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