Goldman Sachs Cuts Price Target on Tempur-Pedic (TPX) After Guidance Not Raised

Goldman Sachs cut its price target on Neutral-rated Tempur-Pedic (NYSE: TPX) from $90 to $82 following Q1 EPS of $0.86 which beat the consensus of $0.84 while the company maintained FY12 sales and EPS guidance.

The firm notes The Street expected the company to raise guidance, given the strength in recent bedding data. There are a number of reasons the company didn't raise guidance and these issues could weigh on the multiple, the firm said. Specifically, competition is coming from many players and the company "nearly admitted to losing market share in specialty in 1Q." In addition, price
increases and forex changes have been worse than planned. Lastly, the company is likely leaving room for higher advertising.

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 $83.75 yesterday.

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