LEG Stock Forecast & Price Target

Leggett & Platt Inc has shown a positive financial trajectory with a 210 basis point increase in adjusted EBITDA margin, reaching 9.9%, supported by effective restructuring efforts. The company also reported a sequential improvement in bedding sales, which increased by 3% compared to the previous quarter, contributing to an upward revision of the EBIT margin guidance for 2025 to a range of 6.5-6.9%. Additionally, both gross margin and adjusted EBIT margin experienced significant year-over-year expansions, indicating operational efficiency and favorable market conditions.

Leggett & Platt Inc has indicated a worsening trend in its Bedding Products segment, which accounts for the majority of its revenue, experiencing a 10% decline in sales year-over-year, primarily due to a 13% drop in volumes and significant reductions in adjustable bed and specialty foam categories. The Specialized Products segment also reported a 7% decline in revenues, evidencing a challenging market environment with notable volume decreases, particularly in steel rod sales. Given these persistent weaknesses across key segments and customer-related issues, the outlook for Leggett & Platt's financial performance appears increasingly negative, suggesting potential difficulties ahead in achieving previous sales guidance for 2025.