Tempur Sealy International Inc
TPX is progressing to close the Mattress Firm acquisition this year.
The Lexington, Kentucky-based company has emerged as a “dominant” player in the mattress industry and its multi-year growth outlook is “becoming highly attractive to long-term investors,” according to Piper Sandler.
The Tempur Sealy International Analyst: Peter Keith upgraded the rating for Tempur Sealy International from Neutral to Overweight, while raising the price target from $41 to $61.
The Tempur Sealy International Thesis: The company is likely to exceed the current consensus earnings estimates for 2024, Keith said in the upgrade note.
Check out other analyst stock ratings.
The analyst mentioned four reasons for the upgrade:
- Tempur is likely to generate earnings of more than $3.00 per share in 2024, versus the consensus estimate of around $2.80 per share.
- Industry demand is “trending toward stabilization/improvement and could see strong growth over the next two years.”
- Tempur Sealy entered 2024 with “its strongest product line-up in years, which should provide sales benefits through 2025.”
- The MFRM acquisition could add $300 million in synergies, “equating to $1.50 of EPS accretion should the acquisition ultimately come to fruition.”
TPX Price Action: Shares of Tempur Sealy International had risen by 2.08% to $50.11 at the time of publication Thursday.