UPDATE: Citigroup Reiterates on Mattress Firm Holding on SSS Rebound Despite Challenging Retail Environment

In a report published Friday, Citigroup analyst Kate McShane reiterated a Buy rating on

, and raised the price target from $40.00 to $47.00. In the report, Citigroup noted, “We are impressed with MFRM's +2.9% SSS against a tough +6.6% SSS compare LY and amid a choppy retail environment. While the comp benefited from 200bps from Mattress Giant and 150bps from a State Fair, comps were still up sequentially ex these events (-0.6% vs. -3.9% in Q2). Mgmt noted comp traction beginning in October and through Black Friday, with the trend expected to continue throughout the remainder of 4Q. We expect MFRM to benefit from TPX's commitment to maintain advertising at 12% of sales in 4Q but also more aggressive promotions on select categories which will slightly weigh on gross margins going forward.” Mattress Firm Holding closed on Thursday at $37.70.