LEG Stock Forecast & Price Target

Leggett & Platt Inc has demonstrated positive financial momentum, highlighted by a notable increase in adjusted EBITDA margin, rising by 210 basis points to 9.9%, driven by successful restructuring initiatives. Furthermore, the company’s EBIT margin guidance for 2025 was raised by 10 basis points, positioning it between 6.5% and 6.9%, indicating strong operational efficiency. Sales within the Bedding Products segment showed sequential improvement, with a 3% increase over the second quarter, reinforcing the underlying strength of its core business amidst broader market challenges.

Leggett & Platt's stock faces a negative outlook due to declining sales across key segments, particularly a 10% year-over-year drop in the Bedding segment, driven by a significant 13% decline in volume. Additionally, the company has reported concerning declines in its Adjustable and Specialty Foam product lines, with volumes plummeting 39% and 17% year-over-year, respectively, exacerbated by changes in retailer merchandising strategies. The Specialized Products segment also saw reductions in revenue and volume, indicating broader weaknesses in demand that could persist into 2026.