UPDATE: Hilliard Lyons Upgrades Tempur-Pedic to Long-term Buy

Hilliard Lyons has published a research report on Tempur-Pedic

and has upgraded the company from Neutral to Long-term Buy. after the company released 1Q earnings. In the report, Hilliard Lyons writes, "With the shares having fallen ~10% below the five-year median multiples of EV/EBITDA and forward P/E, we believe the intermediate-term risk/reward balance is again reasonable. As such, we are increasing our rating on TPX from Neutral to Long-term Buy with a target price of $70. That price values the shares at 17.1x FY'13E earnings and 9.7x EV / FY'13E EBITDA, multiples that are in line with five-year medians and which we believe is reasonable given the company's financial performance and outlook." Hilliard Lyons has also established a $70 price target on Tempur-Pedic, which is currently trading down $3.71 from yesterday's $61.34 closing price.