Market Overview

Even After 30% Drop, Analyst Says Tempur Sealy Has More Downside

Share:

A horrendous 2018 went from bad to worse for Tempur Sealy International Inc (NYSE: TPX) on Monday after the stock received another analyst downgrade.

The Analyst

Loop Capital analyst Laura Champine downgraded Tempur Sealy from Hold to Sell and lowered her price target for the stock from $49 to $36.

The Thesis

Even after a 31 percent sell-off year-to-date, the analyst thinks things will likely get worse for Tempur Sealy investors before they get better. Champine said in a note that Loop's most recent round of vendor checks haven't been positive for Sealy, and Mattress Firm’s highly promotional sales approach is likely not helping the situation.

Champine doesn't expect Tempur Sealy will regain Mattress Firm as a customer anytime soon, and there are simply too many hurdles ahead for the company at this point to expect much out of the stock.

Loop reduced its Q1 EPS estimate to 47 cents, down more than 50 percent from a year ago.

Price Action

Tempur Sealy was down about 2.5 percent at $42.92 at time of publication.

Related Links:

From Mattresses To Groceries, Survey Shows Consumers Don't Always Prefer Amazon

Piper Jaffray Lowers Tempur Sealy Price Target, Says Mattress Firm Gained Market Share With 'Aggressive' Promotions

Latest Ratings for TPX

DateFirmActionFromTo
Sep 2020Raymond JamesMaintainsStrong Buy
Sep 2020KeyBancMaintainsOverweight
Jul 2020SunTrust Robinson HumphreyUpgradesHoldBuy

View More Analyst Ratings for TPX
View the Latest Analyst Ratings

 

Related Articles (TPX)

View Comments and Join the Discussion!

Posted-In: Laura Champine Loop Capital Mattress FirmAnalyst Color Downgrades Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
ZZZScotiaBankMaintains27.0
FSVScotiaBankMaintains128.0
FNScotiaBankMaintains38.0
CSUScotiaBankMaintains1,600.0
CXOScotiaBankDowngrades43.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com