UBS Starts Select Comfort (SCSS) at Sell
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
UBS initiates coverage on Select Comfort (NASDAQ: SCSS) with a Sell rating and a price target of $20.00, saying while it is a strong niche player, its positioning is awkward.
Analyst Michael Lasser commented, "We understand the allure of SCSS' bull case w. easy NT compares due to idiosyncratic factors, well-regarded products & further store growth. This is transposed against a rich history of private market activity in the space. However, we think these considerations are more than offset by increasing competition, reliance on existing customers (1/3 sales are to repeat customers/referrals), susceptibility of its biz model to external shocks, less operating flexibility, & lofty expectations. The consensus assumes 10% sales growth & 120 bps of OM expansion in '17. Plus, we doubt SCSS can continue to push AUP higher (already at $4,206) in a consolidating & increasingly transparent market."
Shares of Select Comfort closed at $22.82 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Starts HubSpot Inc (HUBS) at Outperform
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- Dougherty & Co Starts Allscripts (MDRX) at Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Hot New Coverage, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!