Piper Jaffray analyst Peter Keith reiterated an Overweight rating and boosted his price target on Select Comfort (NASDAQ: SCSS) to $42.00 (from $37.00) following Q1 results.

Peter Keith commented, "We are reiterating our OW rating and raising our PT to $42 (22x our 2016E EPS of $1.90) after another strong quarter that saw EPS of $0.54 well above our estimate of $0.43 and consensus of ~$0.41. Business momentum appears to be building and we believe there continues to be upside to the company's raised EPS guidance of $1.35 for 2015. Importantly, over the next two years (through 2016) we believe SCSS will be able to achieve a ~25% EPS CAGR which should continue to push shares higher in the coming quarters. We are raising our 2016 multiple assumption to 22x (from 20x) to account for stronger EPS growth through 2016, solid execution and the opportunity for SCSS to claw significant OPM over time."

The firm raised FY 2015 EPS from $1.35 to $1.40 and FY 2016 EPS from $1.84 to $1.90.

For an analyst ratings summary and ratings history on Select Comfort click here. For more ratings news on Select Comfort click here.

Shares of Select Comfort closed at $34.12 yesterday.