UPDATE: Stifel Nicolaus Upgrades Mattress Firm Holding to Buy on Predicted Sales Rebound

In a report published Friday, Stifel Nicolaus analyst John Baugh upgraded the rating on Mattress Firm Holding Corp.

from Hold to Buy and named a $37.00 price target. In the report, Baugh noted, “Comparable sales growth rates have decelerated since the October 2011 quarter, but April and then July quarter comparisons get much easier. Add to this the inclusion of the two tranches of Mattress Giant stores that will be fully incorporated in the July quarter results and comparable store revenues should show a re-acceleration...We believe that Q4 expectations (to be released on March 26) are sufficiently low that the weak industry sales we have witnessed in December and January should not be problematic. The CEO has been open about ‘choppy' traffic trends in December and January. We also believe that Mattress Firm had a decent President's Day event and that weather issues plaguing much of the country have generally not been an issue. Our estimates for January 2014 at $2.05 per share are materially above Street consensus of $1.96.” Mattress Firm Holding Corp. closed on Thursday at $30.14.