Tempur Sealy International Inc TPX has made significant strides towards finalizing the Mattress Firm acquisition this year.
The Lexington, Kentucky-based company has become a formidable force within the mattress industry, and its long-term growth prospects are increasingly appealing to 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 poised to surpass the current consensus earnings estimates for 2024, Keith said in the upgrade note.
Explore additional analyst stock ratings.
The analyst provided four key reasons for the upgrade:
- Tempur is projected to yield earnings of over $3.00 per share in 2024, compared to the consensus estimate of around $2.80 per share.
- Industry demand is moving towards stabilization and improvement, potentially experiencing robust growth over the next two years.
- Tempur Sealy commenced 2024 with its most robust product lineup in years, which is expected to drive sales benefits through 2025.
- The MFRM acquisition could bring in $300 million in synergies, translating to $1.50 of EPS accretion if the acquisition materializes.
TPX Price Action: Shares of Tempur Sealy International had risen by 2.08% to $50.11 at the time of publication on Thursday.