UPDATE: Piper Jaffray Raises PT on Mattress Firm on Comp and EPS Growth Set to Accelerate Positively

In a report published on Wednesday, Piper Jaffray analyst Peter Keith raised the price target on

from $42.00 to $48.00, and reiterated an Overweight rating. In the report, Piper Jaffray noted, "While Q1 results were relatively in line, MFRM shares are set up extremely well for the coming quarters for the following reasons: (1) Industry trends improving as mattress manufacturers have recently launched a slew of new products, and have stepped up national advertising spend to support the launches; (2) Acquired Mattress Giant (MG) stores starting in Q2 become nicely accretive to comp and gross margin; (3) MFRM is now lapping last year's TPX share losses which will help gross profit dollar growth; and (4) Product margin expansion is now trending in the right direction with Q1 at +110 bps y/y. All in, we believe MFRM is poised to see accelerating comp and EPS growth through the rest of the year, and full year guidance looks conservative." Mattress Firm is currently trading at $40.17.