UPDATE: Stifel Upgrades Select Comfort On Raised EPS Estimates

In a report published Tuesday, Stifel analyst John Baugh upgraded the rating on

from Hold to Buy, and named a $39.00 price target. In the report, Stifel noted, “We are upgrading our rating on Select Comfort from Hold to Buy. Our target price is $39 per share based on a 20x multiple on our 2016 EPS estimate of $1.93 or a better than 30% potential return. We are raising our 4Q and 2015 EPS estimates in front of the soon to be released 4Q results based on our belief that the company's marketing message and product innovations are continuing to generate strength that was clearly visible in the 3Q print. Our 2014 EPS estimate is now $1.14 vs our previous estimate of $1.12 and our 2015 estimate is $1.50 vs consensus of $1.40 vs our previous estimate of $1.46.” Select Comfort closed on Monday at $29.41.