Leslie's (NASDAQ: LESL) has maintained its Hold rating with a steady price target of $3.25 as announced by Jefferies. The firm's position comes in light of the recent executive shift, with CEO Michael Egeck stepping down and Jason McDonell set to take the helm effective September 9, 2024.
The transition occurs as the pool season in seasonal markets is nearing its end, providing McDonell with ample time to acclimate before the peak period starting Memorial Day 2025.
The recent performance of Leslie's shares suggests that investors might be receptive to this leadership change. The incoming CEO, Jason McDonell, brings experience from his recent tenure at Advance Auto Parts (NYSE:AAP), which shares similarities with the aftermarket pool sector in terms of business dynamics.
During a conversation with Leslie's CFO, the firm gained insights into McDonell's background and the parallels between the aftermarket auto and pool industries. This understanding reinforces the firm's decision to maintain the current rating and price target for Leslie's stock.
In other recent news, Leslie's reported a year-over-year decrease of 7% in total sales for Q3 fiscal 2024, amounting to $570 million. The gross margin dropped to 40%, resulting in a gross profit of $229 million, with an adjusted EBITDA of $109 million.
In leadership changes, Leslie's Inc. appointed Jason McDonell as its new CEO, effective from September 9, 2024. McDonell, boasting a rich career history with companies like PepsiCo (NASDAQ:PEP) and Advanced Auto Parts, will also join the company's Board of Directors.
The company also confirmed amendments to its corporate bylaws, aiming to streamline procedures for stockholder proposals and director nominations. This move is part of Leslie's Inc.'s ongoing efforts to enhance clarity and consistency in its operations.
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