UPDATE: Longbow Upgrades Select Comfort To Buy, Cites 'Optimistic Build Up To Labor Day, Better Internal Execution'

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Investors are bidding up shares of Select Comfort
SCSS
Tuesday following an earlier upgrade from Longbow's Joshua Borstein. The stock last traded at $24.04, up 3.5 percent from Monday's closing price. The firm now rates Select Comfort with a Buy rating and $31 price target, up from a Neutral rating previously. Citing recent channel checks, Borstein noted, "since Memorial Day through July 4 and leading up to Labor Day, retailer optimism has gradually increased, which we believe the recent ISPA data reflects (+6.1% mattress sales in July using a three month moving average)." Borstein next pointed to consumer spending which is being narrowed toward the Home segment. "The recovery in bedding sales is occurring within a larger trend of consumer spending related to the home, a trend recently manifest by results from HD and LOW. Going forward, we believe bedding will benefit from the continued rotation of consumer spending toward the home." Longbow's new price target represents potential upside of about 29 percent from where the stock is trading Tuesday morning.
Posted In: Analyst ColorNewsUpgradesPrice TargetAnalyst Ratings
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