Tempur Sealy (TPX) PT Raised to $77 at Piper Jaffray Into Q2 Print

Piper Jaffray analyst Peter Keith reiterated an Overweight rating and boosted his price target on Tempur Sealy (NYSE: TPX) to $77.00 (from $68.00) ahead of Q2 results sscheduled for Thursday (07/30) after the close.

Keith commented, "Our checks for the North American business since May have remained positive with strength continuing into July, so we expect a healthy revenue number for Q2. While we have less visibility around margin, Q2 margins should benefit from (1) Recent price increases; and (2) Lower launch costs y/y for the Tempur North American segment. Importantly, we believe downside risk is minimal (despite the recent run in shares), as most investors appear to be focused on the longer-term multi-year margin opportunity, under a yet-to-be-named CEO."

The firm is raising 2015E EPS to $3.07 (from $3.03) and our multiple to 20x (from 19x).

For an analyst ratings summary and ratings history on Tempur Sealy click here. For more ratings news on Tempur Sealy click here.

Shares of Tempur Sealy closed at $67.93 yesterday.

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