UPDATE: Piper Jaffray Initiates Mattress Firm with Overweight, $45 PT on Growth Outlook

Piper Jaffray initiates its coverage on Mattress Firm

with a rating of Overweight and a price target of $45. Piper Jaffray says, "We are initiating coverage of MFRM with an Overweight rating and $45 price target, based on 20x our F13E EPS of $2.23. We believe MFRM is well positioned to take market share within the highly fragmented and rapidly growing mattress industry that continues to shift towards specialty/non-innerspring mattresses and away from innerspring mattresses. In addition, the company has a long runway for growth ahead as we believe it can increase its store by base by >150% and complete opportunistic tuck-in acquisitions. Longer term, we believe this growth will allow the company to capitalize on increased buying power, leverage advertising, and leverage general fixed costs." MFRM closed at $35.38 on Thursday.