Loop Capital Upgrades Tempur Sealy (TPX) to Buy

Loop Capital analyst Laura Champine upgraded Tempur Sealy (NYSE: TPX) from Hold to Buy with a price target of $75.00 (from $50.00).

The analyst commented, "We are raising our rating from Hold to Buy and raising our price target for TPX from $50 to $75 after folding the potential financial impact from the Mattress Firm acquisition into our model. Our price target incorporates the value for the Mattress Firm acquisition starting in 2025. Our Buy rating assumes the Mattress Firm acquisition closes, and we have more confidence in this following the company's 3/12 press release announcing that TPX has reached an agreement with Purple and providing a Q2 timeframe for the end of the FTC's review. The acquisition is likely to involve some divestitures of MF stores, and our valuation assumes about $300MM of sales are divested. We are only modeling $100MM of cost synergies, in line with management's initial outlook for the deal. Our published estimates are for TPX stand-alone in the interest of comparability with consensus. We've made a few adjustments to margins in our stand-alone TPX estimates as well, largely on gross margins in 2024 as we see an improving input cost environment."

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 $54.89 yesterday.

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• CFRA Upgrades Veeva Systems (VEEV) to Buy following +4.58% day