Market Overview

Wedbush Remains Bullish On Tempur Sealy After Checks Indicate Good Start For Tempur Breeze

Share:

Memorial Day weekend mattress sales checks indicate favorable trends for Tempur Sealy International Inc’s (NYSE: TPX) products and indicated its new high-end Tempur Breeze product was gaining traction, according to Wedbush.

The Analyst

Wedbush’s Seth Basham maintained an Outperform rating on Tempur Sealy with a 12-month $74 price target.

The Thesis

Basham said checks suggest mid-single-digit year-on-year growth for Tempur Sealy's products, while increased traction for Tempur Breeze will help boost average selling prices.

The sales trends were favorable despite a slight pullback in promotions across the industry. The company’s sales and margin trends seem to be on track for the second quarter, “with more upside than downside risk,” the analyst wrote in the note.

Meanwhile, longtime business partner with which Tempur Sealy has shared an estranged relationship over the past couple of year, Mattress Firm (NASDAQ: MFRM) appointed a new CEO, John Eck. Basham views the news as positive, although he mentioned this doesn't change the expectation of the two companies arriving at a distribution agreement in the coming months.

Price Action

Shares of Tempur Sealy declined 1.3 percent to $63.16 at the time of publication Wednesday afternoon.

Related Links:

A Tempur Sealy-Mattress Firm Reunion? Raymond James Says It's Increasingly Likely

Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios

Latest Ratings for TPX

DateFirmActionFromTo
Jul 2019MaintainsOverweight
Jun 2019ReinstatesStrong Buy
Jun 2019UpgradesSellHold

View More Analyst Ratings for TPX
View the Latest Analyst Ratings

Posted-In: Seth Basham Tempur Breeze WedbushAnalyst Color Reiteration Analyst Ratings

 

Related Articles (TPX + MFRM)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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

Mid-Afternoon Market Update: Canada Goose Falls After Q1 Results; Eltek Shares Jump

Huawei Woes Could Be A Boon For This ETF