Tempur-Pedic International Inc. (TPX) Upgraded To Buy

Analysts at Longbow Research have upgraded the shares of Tempur-Pedic International Inc. (NYSE: TPX) from Neutral to Buy. Analysts have set a price target of $32 for the Tempur-Pedic stock.

Analysts at Longbow believe that the consensus EPS expectations for 4Q09 and FY10 are too low. Based on the analysis of 4Q09 expectations, analysts believe that current consensus expectations are conservative and that Tempur-Pedic is positioned to post revenue and EPS upside.

The revised 4Q09 revenue and EPS estimates for Tempur-Pedic are $221 million and $0.33 against the previous estimate of $214 million and $0.31. Analysts also expect Tempur-Pedic to outperform FY10 expectations. The revised revenue and EPS estimates for FY10 for Tempur-Pedic are $925 million and $1.42.