UPDATE: KeyBanc Downgrades Select Comfort Corp. to Hold, Removes $30 PT
In a report published Wednesday, KeyBanc downgraded its rating on Select Comfort Corp. (NASDAQ: SCSS) from Buy to Hold, and removed its $30.00 price target.
KeyBanc noted, “Since we upgraded SCSS to BUY in August 2009, we have been positive on the Company (including naming it as one of our top picks in 2010, 2011, and 2012), supported by SCSS's opportunity to improve its proprietary product offering, its distribution network, and its advertising efficiency. On the positive side, we still believe SCSS offers a differentiated business model with numerous growth avenues, and we expect the recovery in the housing market will remain a tailwind. However, following recent meetings with senior management, members from retailers, and manufacturers across the industry, we expect concerns about competition to weigh on the multiple, and potentially earnings as well. As a result, we recommend investors look to BUY-rated MFRM and newly upgraded TPX as ways to best invest in the mattress sector.”
Select Comfort Corp. closed on Tuesday at $22.21.
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