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Investing.com - Jefferies has lowered its price target on JELD-WEN Holding (NYSE:JELD) to $2.25 from $4.50 while maintaining a Hold rating on the stock. The new target sits just above JELD-WEN’s current price of $2.13, with the stock trading near its 52-week low of $2.12 and down nearly 74% year-to-date.
The significant 50% reduction in price target comes as the building products manufacturer faces mounting operational challenges, market share losses, and a difficult demand environment. InvestingPro data shows the company’s revenue declined 15.28% over the last twelve months, with analysts forecasting a further 16% sales decline this year.
Jefferies noted that JELD-WEN is in a "precarious situation" with leverage expected to reach 9.5x by year-end, raising concerns about the company’s financial stability. This aligns with InvestingPro data showing an extremely high debt-to-equity ratio of 11.76 and an Altman Z-Score of 1.44, indicating financial distress.
The firm acknowledged that JELD-WEN is taking steps to address its financial challenges by reducing cash burn and conducting a strategic review of its European business operations.
While these measures could potentially improve the company’s liquidity position, Jefferies indicated they are "unlikely to improve its leverage profile," suggesting continued financial pressure ahead.
In other recent news, Jeld-Wen Holding Inc. reported disappointing financial results for the third quarter of 2025. The company announced earnings per share (EPS) of -$0.20, which was significantly below the anticipated $0.14. Additionally, Jeld-Wen’s revenue came in at $809.5 million, falling short of the expected $823.64 million. These results have raised concerns among investors about the company’s performance. The earnings miss and revenue shortfall are notable developments for the company. While the stock price movement following the announcement is not discussed here, the financial figures themselves highlight the challenges Jeld-Wen is facing. These recent developments could influence investor sentiment and analyst perspectives moving forward.
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