Mattress Firm Spiking After Earnings & Sleepy's Acquisition; Vetr Crowd Likes Stock

• Shares of Mattress Firm Holding Corp MFRM were trading up more than 4.5 percent on Tuesday afternoon.
• The surge came after the company reported its third quarter financial results –on Monday morning, and the resulting 4.47 percent decline in the stock.
• Now, the Vetr crowd has decided to upgrade Mattress Firm’s stock’s rating from 4 stars to 4.5 stars.

Mattress Firm reported third quarter earnings of $0.82 per share on revenue of $699.51 million on Monday morning. While earnings fell short of the Street’s expectations for EPS of $0.90, sales came in well above consensus at $653.05 million.

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Following the revenue beat, the Vetr crowd became increasingly bullish on the stock, upgrading it from 4 stars to 4.5 stars, with 80 percent bullish ratings from the crowd. Moreover, the Strong Buy rating was accompanied by a $56.81 crowd price target, which implies an upside of more than 11.7 percent.

On top of the revenue beat, a reason that could be driving the increased optimism is the recently announced Sleepy's acquisition. The company said on Monday that it would be acquiring its New York-based competitor for roughly $780 million. However, CEO Steve Stagner added that, at least in the short-term, both companies would continue to operate separately.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.