UPDATE: Piper Jaffray Cuts PT to $34 on Mattress Firm on Disappointing Outlook

Piper Jaffray reiterated its Overweight rating on Mattress Firm MFRM but reduced its price target from $44 to $34. Piper Jaffray said, "We are maintaining our OW rating and lowering our PT to $34 following Q3 results that saw a disappointing outlook for Q4. While Q3 results were solid, the company saw a step-down in traffic trends beginning in late October and continuing through November. As a result, the company guided Q4 comp and EPS to be well below expectations. Certainly this announcement is disappointing to say the least (shares were down ~22% after hours). However, we do not believe MFRM has any structural issues nor do we believe the last 6 weeks of soft industry sales are indicative of a longer-term trend." Mattress Firm closed at $30.32 on Tuesday.