Wedbush Downgrades Tempur-Pedic (TPX) to Neutral; Cutting Numbers and Removing From Best Ideas List

June 7, 2012 8:44 AM EDT
Get Alerts TPX Hot Sheet
Price: $63.14 +0.73%

Rating Summary:
    6 Buy, 12 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wedbush downgraded Tempur-Pedic (NYSE: TPX) from Outperform to Neutral with a price target of $25.00 (from $72.00).

Analyst, Joan Storms, said, "Downgrading TPX as a result of the magnitude of the decline in the business from increased competition, limited visibility, management credibility, and lack of near-term catalysts. Our new price target of $25 assumes TPX should trade at roughly 8.5x our revised 2013 forecast of $2.90, which is basically in line with our growth rate for next year. While our new multiple assumption may seem harsh, we mainly cite reduced growth and lack of visibility."

"We are cutting our forecast for 2012 EPS to $2.70 (from $4.00) and 2013 EPS to $2.90 (from $4.65). We reduce our forecast for Q2 EPS to $0.36 (from $0.86)."

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 $22.39 yesterday.

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