Tempur Sealy International Inc. was upgraded to buy from hold at Stifel based on the company's quick recovery from contract terminations with Mattress Firm earlier this year that sent Tempur Sealy shares to a three-year low. Its price target was raised to $80 from $60. "Industry trends are soft," analysts led by John Baugh said. "While this in a way provides less tailwind for the company, it also accentuates what we believe will be sizable market share gains (pro-forma or excluding Mattress Firm from the prior year) for the rest of this year and into 2018." Tempur Sealy lost access to 3,500 locations when the Mattress Firm contracts were terminated. But "comparisons do get easier as Mattress Firm was already sliding with Tempur Sealy in 2016," Stifel says. Tempur Sealy shares are unchanged in premarket trading, and down nearly 10% for the year so far. The S&P 500 index is up 8.5% for 2017 to date.
Copyright © 2017 MarketWatch, Inc.