Oppenheimer Reiterates Buy, Reduces Price Target on Tempur-Pedic (TPX)

May 9, 2012 1:45 PM EDT
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Price: $63.68 -1.67%

Rating Summary:
    6 Buy, 12 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Oppenheimer analysts lowered their price target on Tempur-Pedic International (NYSE: TPX) from $90.00 to $75.00 but maintained an OUTPERFORM rating on the company.

Shares of TPX got creamed this month, dropping 45 percent. But Oppenheimer analysts believe the substantial drop in the shares of Tempur-Pedic since the announcement of 1Q results last month, exacerbated by this week's news that the company will be promoting its Cloud Supreme mattress, is a significant overreaction and creates a buying opportunity.

In a company note, an Oppenheimer analyst said “We understand that investors have grown increasingly skittish of late, particularly within the consumer discretionary arena. That said, we find it very hard to believe that mattress industry dynamics have changed all that dramatically in such a short period of time, or that the Tempur-Pedic brand no longer carries cachet with consumers.”

For an analyst ratings summary and ratings history on Tempur-Pedic click here. For more ratings news on Tempur-Pedic click here.

Shares of Tempur-Pedic closed at $46.59 yesterday.

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