Piper Jaffray Reiterates Overweight, $23 PT on Select Comfort
Piper Jaffray maintains its Overweight rating and $23 price target on Select Comfort (NASDAQ: SCSS) as a meeting with management reinforces the company's attractive growth prospects.
Piper Jaffray comments, "We continue to believe SCSS is one of the best growth stories in our coverage universe. Additionally, we believe SCSS shares are likely to see earnings multiple expansion over the coming months. At 16x FTM EPS, shares appear inexpensive for a high quality growth name with accelerating square footage growth of 8-10%, double digit comp growth, gross margin drivers, operating leverage, and positive FCF that may be reallocated back to shareholders at some point during 2012."
SCSS closed at $19.44 per share on Friday.
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