Goldman Sachs downgraded Leslie’s to Neutral from Buy with a price target of $5, down from $10, following the fiscal Q4 report. The company’s sales and margins are expected to remain pressured in the near term, and the demand recovery Goldman expected to take place in fiscal 2024 “now appears increasingly uncertain,” the analyst tells investors in a research note. The firm says that while Leslie’s expects a recovery in traffic and transactions to take place next year, average order value is expected to decline due to continued discretionary demand headwinds and inflation in equipment is expected to be matched by deflation in chemicals. Goldman cites a lack of a near-term catalyst and the uncertain demand recovery for the downgrade.
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