UBS Starts Select Comfort (SCSS) at Sell
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- China Oceanwide to Acquire Genworth Financial (GNW) for $2.7B
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk 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: Stifel Starts Xenon Pharmaceuticals (XENE) at Buy
- Wedbush Reiterates Outperform on Pool Corp. (POOL) Following 3Q Report
- Philip Morris Intl (PM) PT Raised to $101 at Jefferies
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!