Market Overview

UPDATE: Wedbush Maintains Tempur-Pedic International at Neutral Following Sealy Deal

Share:
Related TPX
Mid-Morning Market Update: Markets Open Higher; BlackBerry Earnings Beat Estimates
Benzinga's Top Downgrades
Stocks Open Slightly Higher; Nike Slips After Earnings (Investor's Business Daily)

Wedbush reiterated its Neutral rating and $27 price target on Tempur-Pedic International (NYSE: TPX) following agreement to purchase Sealy (NYSE: ZZ).

Wedbush commented, "The acquisition should be accretive during the first year, and the company expects annual operating cost savings of $40 million by the third year. In addition to operational cost savings (primarily through purchasing and supply chain), Tempur-Pedic has been able to refinance Sealy's debt obligations for a much lower interest rate, and it expects to reduce the company's combined leverage to an optimal level within four to five years. … Many questions remain as to what level of integration the combined company will pursue, and how this may affect future financial results."

Tempur-Pedic International closed at $30.33 on Thursday.

Latest Ratings for TPX

DateFirmActionFromTo
Sep 2016Raymond JamesMaintainsOutperform
Sep 2016KeyBancMaintainsOverweight
Sep 2016Longbow ResearchDowngradesBuyNeutral

View More Analyst Ratings for TPX
View the Latest Analyst Ratings

Posted-In: WedbushAnalyst Color News Reiteration M&A Analyst Ratings

 

Related Articles (TPX + ZZ)

View Comments and Join the Discussion!