LEG Stock Forecast & Price Target

Leggett & Platt Inc has demonstrated a positive financial trajectory, highlighted by a notable increase in Adjusted EBITDA margin, which rose by 210 basis points to 9.9%, supported by restructuring savings. The company's bedding sales reflected a sequential improvement of 3% over the second quarter, underscoring a recovery trend as sales accelerated throughout the period. Additionally, gross margin and adjusted EBIT margin have expanded year-over-year by 170 bps and 80 bps, respectively, indicating effective management of costs and strengthening profitability across its segments.

Leggett & Platt has maintained its 2025 sales outlook but has adjusted its total volume decline expectations to a range of low single digits down from low single to high single digits, indicating a deteriorating market environment. The company's Bedding Products segment has experienced a notable 10% year-over-year sales drop, with a 13% volume decline particularly pronounced in the Adjustable and Specialty Foam categories due to shifts in retailer merchandising strategies. Additionally, the Specialized Products segment reported a 7% year-over-year revenue decrease, driven by reduced volumes and weaker demand in lower- and mid-tier furniture price points, which collectively contribute to a negative outlook for the company's financial performance in the near term.