UPDATE: UBS Upgrades Sleep Number (SNBR) to Neutral

February 18, 2021 4:48 AM EST
Get Alerts SNBR Hot Sheet
Price: $121.98 -0.2%

Rating Summary:
    1 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 22 | New: 25
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(Updated - February 18, 2021 4:49 AM EST)

UBS analyst Michael Lasser upgraded Sleep Number (NASDAQ: SNBR) from Sell to Neutral with a price target of $135.00 (from $65.00).

The analyst comments "Our previous bearish thesis on the stock was built on our belief that SNBR's pricing growth (ASP of $4,900) would come under pressure as online penetration grew across the industry. Plus, we thought that SNBR's 30% store exposure to malls was a risk given a declining mall traffic environment. While these risks might become evident as demand decelerates, we believe our bearish thesis is unlikely to play out in the near-term given the exceptionally strong industry demand environment. Further, SNBR's 2021 guidance implies another year of strong 20%+ EPS growth on top of the 80%+ growth it posted in 2020. We believe this should provide near-term support to its valuation. As a result, we move our rating to Neutral from Sell."

For an analyst ratings summary and ratings history on Sleep Number click here. For more ratings news on Sleep Number click here.

Shares of Sleep Number closed at $120.01 yesterday.


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