Piper Jaffray, Oppenheimer Say Buy the Dip in Tempur-Pedic (TPX); Shares Up 7%

May 9, 2012 11:46 AM EDT Send to a Friend
Get Alerts TPX Hot Sheet
Price: $55.69 +2.90%

Rating Summary:
    6 Buy, 7 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 40
Trade TPX Now!
Join SI Premium – FREE
Investors in Tempur-Pedic (NYSE: TPX) are finally getting some relief Wednesday morning following a nearly 15 percent decline on Monday and a 3.5 percent decline on Tuesday. The stock last traded at $49.80, up about 7 percent on the session.

The downside was related to news of a rare holiday promotion for the mattress maker. The company will offer a discount of approximately 12-17 percent off the suggested retail price of a TEMPUR-Cloud™ Supreme mattress set, which is one of the three beds in its TEMPUR-Cloud® Collection.

Helping push the stock higher Wednesday, several analysts issued reassuring notes on Tempur-Pedic this morning.

Piper Jaffray's Peter Keith said the recent decline in Tempur-Pedic shares is an "overreaction," noting the promotion was actually included in the guidance the company gave three weeks ago. Keith believes the deal will reduce second-quarter earnings by 3-4 cents per share at most. The analyst also added the drop may have intensified as the company's CFO and Investor Relations were on a flight Monday and unable to respond to the speculation. Keith reduced his price target on Tempur-Pedic shares from $100 to $95, but maintains an Overweight rating.

Elsewhere, Oppenheimer's Joseph Altobello told clients to use the recent drop as a buying opportunity. The analyst maintains an Outperform rating but cut his price target from $90 to $75.

To track all the market-moving analyst comments on shares of Tempur-Pedic, visit our Analyst Ratings page.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Piper Jaffray, Earnings

Add Your Comment