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UPDATE: Piper Jaffray Initiates Mattress Firm with Overweight, $45 PT on Growth Outlook

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Piper Jaffray initiates its coverage on Mattress Firm (NASDAQ: MFRM) with a rating of Overweight and a price target of $45.

Piper Jaffray says, "We are initiating coverage of MFRM with an Overweight rating and $45 price target, based on 20x our F13E EPS of $2.23. We believe MFRM is well positioned to take market share within the highly fragmented and rapidly growing mattress industry that continues to shift towards specialty/non-innerspring mattresses and away from innerspring mattresses. In addition, the company has a long runway for growth ahead as we believe it can increase its store by base by >150% and complete opportunistic tuck-in acquisitions. Longer term, we believe this growth will allow the company to capitalize on increased buying power, leverage advertising, and leverage general fixed costs."

MFRM closed at $35.38 on Thursday.

Latest Ratings for MFRM

DateFirmActionFromTo
Dec 2014WedbushMaintainsOutperform
Dec 2014BarclaysMaintainsOverweight
Dec 2014CitigroupMaintainsBuy

View More Analyst Ratings for MFRM
View the Latest Analyst Ratings

Posted-In: Piper JaffrayAnalyst Color Price Target Initiation Intraday Update Analyst Ratings

 

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