Tempur Sealy International Inc. Sees Bullish Growth Ahead Of Mattress Firm Deal Tempur Sealy International Inc. Sees Bullish Growth Ahead Of Mattress Firm Deal

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By Ronald Tech

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.

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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.

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