Leslie's extends plunge as Jefferies downgrades after 60% guidance cut
17/07/2023 13:31
** Leslie's Inc's LESL.O shares down 4% at $6.43 premarket
after plunging in prior session as Jefferies downgrades pool and
spa products retailer to "hold" from "buy"
** LESL closed down 29.6% at $6.70, and hit record low of
$5.71 on Fri, after co slashed its profit forecast by ~60%
citing abnormal weather and increased price sensitivity
** Co lowered annual EPS guidance to range of 28-32 cents
from 78-86 cents
** With management indicating price cuts did not spur
transactions, gross margin percentage will look worse than
previously anticipated, Jefferies says in note
** Jefferies says it likes incoming CFO Scott Bowman's prior
public co and retail industry experience, but adds it will take
time for investors to gain comfort
** Brokerage chops PT to $7 from $15
** Also, Stifel cut its PT to $6 from $11
** 4 of 13 analysts rate LESL "buy" or "strong buy", rest
have "hold" recommendations; median PT of $8 down from $14 a
month ago, per Refinitiv
** Through Fri close, LESL down 45% YTD
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))