UPDATE: Wedbush Cuts PT to $30 on Mattress Firm on Disappointing Outlook
Wedbush reiterated its Outperform rating on Mattress Firm (NASDAQ: MFRM) but reduced its price target from $36 to $30.
Wedbush noted, "We maintain our OUTPERFORM rating given valuation, despite recent weakness in slowing traffic. Q3 was solid, yet the company has seen some slowing traffic into Q4, which was attributed to the macro-environment and a decline in competitive advertising. We see better times ahead. The integration of acquisitions continues to be above plan and cannibalization seems minimal from acquired stores in existing markets. While this may seem in opposition to recent improving housing metrics, we have seen mixed results from other hardlines retailers as well."
Mattress Firm closed at $30.32 on Tuesday.
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