Piper Jaffray Says Strong Mattress Sales in April Good Sign for Select Comfort (SCSS), Tempur-Pedic (TPX) (ZZ)

Stocks in the Mattress group are moving higher Friday morning following a bullish research note from Piper Jaffray's Peter Keith earlier. The analyst noted recent data from the International Sleep Products Association which suggested wholesale dollar sales of mattresses were up about 14.5 percent in April. Dollar sales in March were up just 4 percent.

In addition, unit sales were up 5.4 percent for the mattress category, sharply better than a 4.1 percent decline in March. Average unit price was up 8.7 percent on a year-over-year basis.

Keith said the figures bode well for Select Comfort (Nasdaq: SCSS) and Tempur-Pedic (NYSE: TPX). While he warned Sealy (NYSE: ZZ) may face gross margin pressure during the recent quarter, traders in the sector are buying shares anyways.

The analyst maintains Overweight ratings on Select Comfort and Tempur-Pedic shares, and a Neutral rating on Sealy shares.

Select Comfort shares last traded at $27.99, up about 5.3 percent, shares of Tempur-Pedic are up 6.5 percent to $50.14, and shares of Sealy are up 4.4 percent to $1.68.

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