Leslie’s upgraded to Hold from Sell at Stifel

Stifel upgraded Leslie’s (LESL) to Hold from Sell with a price target of 55c, down from $1.30. The firm says its updated outlook represents a “deep discount” for Leslie’s relative to its retail peers. The stock’s risk/reward now favors a neutral approach with meaningful downside from current levels requiring going concern risk to “commandeer the narrative” versus underperforming expectations, the analyst tells investors in a research note. Stifel thinks Leslie’s shares are likely to remain volatile, but believes the “depressed” share price, the company’s leverage profile, and limited investor interest “put all options on the table including a meaningful restructuring narrowing the focus or takeout potential targeting value preservation versus meaningful upside.”