Leslie’s double downgraded to Underperform at BofA on weak free cash flow

As previously reported, BofA downgraded Leslie’s (LESL) to Underperform from Buy with a price target of $1.40, down from $2.65, citing share loss weighing on top line growth, “disappointing” FY25 EBITDA guidance and muted free cash flow generation limiting the company’s ability to pay down debt. The firm lowered its FY25 and FY26 adjusted EBITDA estimates by 18% and 23%, respectively, to reflect weaker sales growth and lower margins.