Piper Jaffray Maintains Overweight on Select Comfort After Management Presentation
Piper Jaffray has published a research report on Select Comfort (NASDAQ: SCSS) and maintains its Overweight rating and $41 price target following management's presentation at the 32nd Annual Piper Jaffray Consumer Conference.
In the report, Piper Jaffray writes, "SCSS shares are under significant pressure today from a mattress industry competitor reducing its sales and earnings outlook due to a more competitive environment. In speaking with SCSS management today at our conference, we believe weakness in shares represents a notable buying opportunity. The company reiterated its long-term guidance and highlighted that it is getting better at predicting performance. Management is aware of competitor promotions but believes it is relatively immune from promotions at competing mattress retailers, and it has not changed its promotional cadence. In sum, we remain confident in the company achieving its full year EPS guidance of $1.38-$1.46, and note shares are currently trading at 15x our 2012 estimate of $1.46."
Select Comfort is currently trading down $5.03 from yesterday's $25.93 closing price.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.