Oppenheimer Upgrades Tempur-Pedic to Outperform, $70 PT

In a note out today, Oppenheimer upgraded mattress maker Tempur-Pedic International TPX to outperform from perform with a price target of $70, implying almost 40% upside from where the shares currently trade. “In an attempt at valuation, we conducted a scenario analysis around TPX's 2014 sales target of $2B, using various sales and operating margin assumptions. Importantly, each case yielded a potential 2014 stock price well above current levels, including a base case of $98, further underscoring our bullish stance,” Oppenheimer said in the note.