Bank Of America Defends This Mattress Name

• Shares of Tempur Sealy International Inc TPX, a smid cap bedding provider have gained almost 30 percent over 2015, comfortably beating the S&P 500’s surge of less than 1 percent.
• However, the stock has lost roughly 12 percent from recent highs.
• In this context, analysts at Bank of America reiterated a Buy rating and $92 price target on the stock.

Analysts at Bank of America recently reiterated a Buy rating and $92 price target -- which implies an upside of more than 28 percent from current prices, on shares of Tempur Sealy International.

The experts pointed out that trends accelerated in November, after a pause in October. In fact, sales were up roughly 7 percent in November.

So, with the shares having lost about 12 percent from recent highs and Bank of America’s belief that 2016 will be the year on which Tempur Sealy will truly begin to outperform its peers, the experts view the stock as a particularly attractive investment option.

Other Views On The Street

Most research firms are also quite bullish on Tempur Sealy. A few months ago, Stifel Nicolaus reiterated a Buy rating and $80 price target on the stock, while Longbow Research issued a Buy rating and $83 price target.

Most recently, analysts at Cantor Fitzgerald issued a Hold rating and $73 price target, which implies very little upside from current valuations.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.