UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Tempur Sealy International Following Positive Feedback on New Products

In a report published Monday, Bank of America analyst Denise Chai reiterated a Buy rating on Tempur Sealy International TPX, and raised the price target from $60.00 to $65.00. In the report, Bank of America noted, “Recent comments from TPX and the largest specialty bedding retailer, Mattress Firm (MFRM, not covered), have been very positive on the new products. On their June 3rd 1Q earnings call, MFRM noted that the new products on the floor are performing very strongly and resonating well with customers. Memorial Day sales also exceeded the company's expectations with new products from Tempur-Pedic, Stearns and Foster, and Sealy Optimum all showing strong velocity. While innerspring has outperformed YTD, MFRM expects specialty to gain back share the rest of the year. We are also encouraged that recently, Conn's (CONN, Not covered) has begun selling Tempur mattresses at stores across the country. At a competitor's conference this week, TPX management noted that they've seen more appliance stores selling mattresses, which could become a new growing retail channel for TPX.” Tempur Sealy International closed on Friday at $57.27.