Shares of Leggett & Platt, Inc. (Symbol: LEG) recently traded at $13.06, surpassing the average 12-month target price of $12.67 set by analysts. When a stock breaks through its target price, analysts often face a critical decision: either downgrade their valuation or raise their target price. Their choice can hinge on positive developments within the company that may justify a new higher evaluation.
Within the Zacks coverage universe, three analysts contribute to Leggett & Platt’s average price target. Interestingly, while the average target stands at $12.67, some analysts have lower estimates, with one setting a target of $12.00. Conversely, another analyst has projected a higher target of $13.00. The standard deviation among these targets is $0.577, showing some variability in expectations.
Understanding the average price target helps investors leverage a “wisdom of crowds” approach. This assessment combines the insights of multiple analysts rather than relying on the opinion of one. With LEG’s stock now above the average target of $12.67, investors are prompted to evaluate the potential for further growth. They must consider whether $12.67 is a stepping stone to an even higher target or an indicator that the stock’s valuation has become stretched. The current perspectives of analysts covering Leggett & Platt, Inc. are summarized in the table below:
| Recent LEG Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 0 | 0 | 0 | 0 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 4 | 3 | 3 | 3 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 1 | 1 | 1 |
| Average rating: | 3.0 | 3.5 | 3.5 | 3.5 |
The average rating, shown in the table, ranges from 1 (Strong Buy) to 5 (Strong Sell). Data for this article was sourced from Zacks Investment Research via Quandl.com. For the latest detailed research report on LEG, visit Zacks.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
