Tempur Sealy International Inc TPX is making significant progress to finalize the Mattress Firm acquisition this year.
The Lexington, Kentucky-based company has established itself as a dominant force in the mattress industry. Piper Sandler has described its multi-year growth outlook as highly attractive to long-term investors.
The Tempur Sealy International Analyst: Peter Keith has elevated the rating for Tempur Sealy International from Neutral to Overweight and has raised the price target from $41 to $61.
The Tempur Sealy International Thesis: The company is anticipated to surpass the current consensus earnings estimates for 2024, as per Keith’s upgrade note.
The analyst cited four reasons for the upgrade:
- Tempur is projected to generate earnings of more than $3.00 per share in 2024, compared to the consensus estimate of around $2.80 per share.
- Industry demand is trending toward stabilization/improvement and could witness robust growth over the next two years.
- Tempur Sealy entered 2024 with its strongest product lineup in years, expected to yield 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.