A Closer Look at 4 Analyst Recommendations For Leggett & Platt
Throughout the last three months, 4 analysts have evaluated Leggett & Platt (NYSE:LEG), offering a diverse set of opinions from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 3 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 1 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Leggett & Platt, presenting an average target of $12.75, a high estimate of $14.00, and a low estimate of $11.00. A decline of 21.54% from the prior average price target is evident in the current average.
Investigating Analyst Ratings: An Elaborate Study
A clear picture of Leggett & Platt's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Keith Hughes | Truist Securities | Lowers | Hold | $11.00 | $13.00 |
| Keith Hughes | Truist Securities | Lowers | Hold | $13.00 | $16.00 |
| Susan Maklari | Goldman Sachs | Lowers | Neutral | $14.00 | $20.00 |
| Peter Keith | Piper Sandler | Lowers | Underweight | $13.00 | $16.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Leggett & Platt. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Leggett & Platt compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Leggett & Platt's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Leggett & Platt's market standing. Stay informed and make well-considered decisions with our Ratings Table.
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Delving into Leggett & Platt's Background
Leggett & Platt Inc designs and produces engineered components and products found in homes and automobiles. It operates its business through three segments namely Bedding Products, Specialized Products, and Furniture, Flooring, and Textile Products. It generates the majority of its revenue from Bedding Products. Serving a broad suite of customers around the world, Leggett & Platt's products include bedding components, automotive seat support, and lumbar systems, specialty bedding foam and private label finished mattresses, components for home furniture, and work furniture, flooring underlayment, adjustable beds, and various other products.
Leggett & Platt: Financial Performance Dissected
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Leggett & Platt's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -9.62% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Leggett & Platt's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.88% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.41%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Leggett & Platt's ROA excels beyond industry benchmarks, reaching 0.68%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.78.
Understanding the Relevance of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.