Select Comfort (SCSS) Raised to Buy at KeyBanc, Analyst Sees Improving Fundamentals

August 30, 2013 6:46 AM EDT Send to a Friend
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Price: $27.33 +1.83%

Rating Summary:
    2 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 35
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KeyBanc upgraded Select Comfort (NASDAQ: SCSS) from Hold to Buy with a price target of $30.00. Analyst Bradley B. Thomas has increased confidence in the company's underlying fundamentals.

"We have long argued that SCSS offers a compelling vertically-integrated business model, with opportunity to improve its real estate portfolio and introduce new products. We recently met with management at its Minneapolis headquarters, and consistent with its 2Q commentary, we came away more confident that the Company has rectified marketing issues that were detrimental to 1H results," said Thomas.

"Furthermore, our proprietary channel checks on the new Dual Temp topper suggest that the product’s sales continue to ramp. Our checks in July suggested a potential 5% benefit to sales, and our August checks suggest a run-rate that could add 6-8% to sales (on an annualized rate)," he added.

For an analyst ratings summary and ratings history on Select Comfort (NASDAQ: SCSS) click here. For more ratings news on Select Comfort click here.

Shares of Select Comfort closed at $23.98 yesterday.


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