UPDATE: Piper Jaffray Downgrades Tempur-Pedic International to Neutral Post Q2 Sales Update

Piper Jaffray reduces its rating on Tempur-Pedic International

from Overweight to Neutral and reduces it spruce target from $95 to $22. Piper Jaffray notes, "While our downgrade is admittedly well after a substantial sell-off in TPX shares, we believe yesterday's announcement was a game changer and (for the time being) calls into question the company's ability to grow sales and earnings over the next 2-3 years. With Q2 and full year sales guided well below the previous guidance reiterated 1.5 months ago on April 19, business trends appear to have fallen off sharply as of late. Furthermore, this fall-off appears to have caught the company off-guard and is therefore causing management to rethink its approach to advertising, retailer margins, cost structure, etc." TPX closed at $33.29 on Wednesday.