UPDATE: Wedbush Securities Reiterates Outperform Rating, Lowers PT on Mattress Firm
In a report published Friday, Wedbush Securities reiterated its Outperform rating on Mattress Firm (NASDAQ: MFRM), but lowered its price target from $38.00 to $36.00.
Wedbush noted, “The company's basic growth strategy has not changed with opportunities in new and existing markets, as well as opportunistic acquisitions, such as Mattress X-Press. Increased strong relative market share is resulting in increased profitability. We are slightly reducing our price target to $36 (from $38), which assumes that MFRM should trade at approximately 16x (previously 17.5x) our revised 2013 EPS estimate of $2.25 - a discount to our projected 25% longer-term earnings growth rate, given near-term uneven performance yet we expect 2013 to show more balanced growth as recent acquisitions are absorbed.”
Mattress Firm closed on Thursday at $32.45.
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