Leggett & Platt price target lowered to $16 from $18 at Piper Sandler

Piper Sandler analyst Peter Keith lowered the firm’s price target on Leggett & Platt to $16 from $18 and keeps an Underweight rating on the shares following deeper analysis of the company’s balance sheet and cash flows. Previously, Piper’s Underweight rating was primarily based on fundamentals with limited risk to the dividend. The firm is shifting its thesis somewhat as it now sees the probability of a dividend cut moving higher. Looking forward, Piper also sees Leggett & Platt’s leverage ratio approaching its debt covenant limit, and the company is also in danger of losing its investment grade credit rating with another downgrade.