Mizuho Starts Leslie's (LESL) at Neutral

Mizuho analyst David Bellinger initiates coverage on Leslie's (NASDAQ: LESL) with a Neutral rating, PT $7.00.

The analyst comments "We launch coverage of Leslie's with a Neutral rating and $7 PT. LESL is grappling with the normalization of its core pool consumables business after several years of unprecedented price increases helped fuel a stretch of "overearning," in our view. The negative impact of chlorine prices turning more promotional and deflationary should continue over the next several quarters, with guidance for the balance of FY24E suggesting a softer pool season this year. We believe LESL is now a show-me story, requiring several quarters of better execution and customer stabilization before investors turn more constructive. We see long-term value, but recovery remains in the early innings as management builds back credibility following a negative 3Q23A pre-announcement."

For an analyst ratings summary and ratings history on Leslie's click here. For more ratings news on Leslie's click here.

Shares of Leslie's closed at $7.26 yesterday.

You May Also Be Interested In

• JPMorgan Starts Kanzhun Ltd (2076:HK) at Overweight
• HSBC Upgrades Power Asset Holdings (6:HK) (HGKGF) to Buy
• Deutsche Bank Resumes Kloeckner & Co SE (KCO:GR) at Hold