UPDATE: Stifel Nicolaus Cuts PT to $35 on Select Comfort Corporation on December Sales Challenges

Stifel Nicolaus reiterated its Buy rating on Select Comfort Corporation

and lowered the price target from $42.00 to $35.00. Stifel Nicolaus commented, "The big story was a sales drop off in the last two weeks of December which was described by management as “unexpected and abrupt.” Management commented that sales up to that point were in line or above guidance and expectations (up 20% y/y), so our calculations tell us that sales dropped to flat during that time frame. … Our target price of $35 is based on approximately 20x our 2013 EPS estimate. Key risk factors to our target price include, but are not limited to, increased competition, or a prolonged recessionary or weak economic environment, in addition to other risk factors mentioned in the company's 10-K filing." Select Comfort Corporation closed at $28.20 on Thursday.