Leslie’s price target adjusted at Morgan Stanley after reverse stock split

Morgan Stanley analyst Simeon Gutman adjusted the firm’s price target on Leslie’s (LESL) to $7 from 60c to reflect the 1-for-20 reverse stock split taken into effect after the market close on September 26 and keeps an Equal Weight rating on the shares. While leaving its comp and EBITDA margin estimates unchanged, the firm is slightly lowering its target multiple, which it thinks is “fair” given continued market share losses, competitive dynamics, and a weak macro backdrop.