UPDATE: Stifel Nicolaus Lowers PT to $35 on Select Comfort Corporation on Competitive and Recessionary Environment

Stifel Nicolaus reiterated its Buy rating on Select Comfort Corporation

and lowered its price target from $42 to $35. Stifel Nicolaus commented, "Select Comfort reported a strong quarter, beating our estimates and consensus estimates across the board. EPS of $0.30 was a $0.03 beat to our consensus matching estimate and revenue of $205.2 million was well ahead of our $200 million estimate and $197 million consensus estimate. … Our target price of $35 is based on approximately 19X our 2013 EPS estimate of $1.85. Key risk factors to our target price include, but are not limited to, increased competition, or a prolonged recessionary or weak economic environment, in addition to other risk factors mentioned in the company's 10-K filing." Select Comfort Corporation closed at $21.77 on Wednesday.