LEG Stock Forecast & Price Target

Leggett & Platt Inc. has demonstrated a positive outlook, highlighted by a 210 basis point increase in adjusted EBITDA margin to 9.9%, driven by restructuring savings. The company reported a 3% sequential improvement in bedding sales during the second quarter, suggesting recovery and strength within this critical segment. Additionally, the improvement in net leverage ratio to 2.6x, down from 3.8x a year prior, reflects a stronger balance sheet, while the promising innovation pipeline for 2026 positions Leggett & Platt for significant long-term growth potential.

Leggett & Platt has experienced a significant decline in its Bedding segment, with sales falling 10% year-over-year and notable volume declines in categories such as Adjustable Beds (-39%) and Specialty Foam (-17%), indicating vulnerabilities in key areas of its business. The Specialized Products segment has also shown weakness, with revenues down 7% year-over-year and a notable drop in Steel Rod volumes of 20%, highlighting ongoing challenges in maintaining sales momentum across multiple segments. Furthermore, revised EPS estimates for 2025 and 2026 reflect a deteriorating outlook, emphasizing potential sustained financial pressures amid ongoing market challenges.