UPDATE: Stifel Lowers PT on Select Comfort Following Weak September Traffic
In a report published Thursday, Stifel analyst John Baugh reiterated a Buy rating on Select Comfort Corporation (NASDAQ: SCSS), but lowered the price target from $30.00 to $25.00.
In the report, Stifel noted, “Q3 sales of $264 million were up only 7% versus our $277 million up 12% estimate. Q3 EPS came in at $0.36, below our $0.38 estimate and even worse compared with the Street consensus of $0.43. The company commented that sales trends weakened going into Labor Day and softened further as the month of September progressed. 2013 guidance was lowered from $1.30-1.45 to $1.14-1.22 on a sales expectation for Q4 of mid-single digit comps. We had estimated a 9% comp for Q4 previously and EPS of $0.32 compared with our revised Q4 estimate of $0.22. The company is continuing to invest in growth initiatives despite the lowered sales results compared to expectations which is impacting earnings.”
Select Comfort Corporation closed on Wednesday at $24.20.
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