Bull case for Leggett & Platt (LEG) due to cost-cutting measures and restructuring

From Yahoo Finance: 2025-04-21 12:40:00

Leggett & Platt, Incorporated (LEG) is the subject of a bullish thesis by DeepValue Capital, trading at $6.87 as of April 17th. The company, a 140-year-old manufacturer of physical products, has faced challenges post-acquisition of ECS in 2019, leading to a drop in gross margins and demand across its core segments. Despite this, management is implementing cost-cutting measures and restructuring the business to improve financials. CEO Karl Glassman’s incentives align with shareholder interests, and the company’s U.S.-centric manufacturing and steel integration help mitigate risks. With a focus on debt reduction and cost control, LEG has the potential for significant upside for long-term investors.



Read more at Yahoo Finance: Leggett & Platt, Incorporated (LEG): A Bull Case Theory