Tempur Sealy International Shines in Mattress Market with Strong Buy Rating

Piper Sandler's Peter Keith upgraded their rating on Tempur Sealy International (NYSE: TPX) from Hold to Strong Buy on 2024/01/18. The analyst also raised their price target by 48.8% from $41 to $61.

According to Keith, Tempur Sealy International has positioned itself as a leading player in the mattress market due to its impressive "multi-year growth potential." This has caught the attention of long-term investors who are optimistic about the company's future prospects.

Keith predicts that as demand stabilizes near 2016 and 2017 levels, the mattress industry as a whole will experience growth in the next two years. Furthermore, the analyst believes that Tempur Sealy's "greatest product lineup in years" will contribute to increased revenues starting in 2024 and continuing into 2025.

It is worth noting that all top-rated analysts currently rate TPX as a Strong Buy or Buy. There are no analysts who see it as a Hold, and none of them recommend selling the stock. This consensus among analysts indicates a positive sentiment towards Tempur Sealy International.

In terms of earnings per share (EPS), the consensus forecast among analysts is that TPX will deliver $2.71 for the upcoming year. If these predictions are accurate, it would represent a 17.8% increase in yearly EPS on a year-over-year basis.

In terms of stock performance, Tempur Sealy International has shown promising results. Since the company's last quarterly report on September 30, 2023, the stock price has risen by 16.8%. On a year-over-year basis, the stock has increased by 32.2%. During this period, TPX has outperformed the S&P 500, which has grown by 21.7%.

Peter Keith, the Piper Sandler analyst who upgraded TPX's rating, is ranked in the top 11% out of 4,455 Wall Street analysts by WallStreetZen. With an average return of 7.1% and a 51.3% win rate, Keith specializes in the Consumer Cyclical, Healthcare, and Consumer Defensive sectors.

Tempur Sealy International Incorporated, founded in 1846 and headquartered in Lexington, KY, is a manufacturer and distributor of mattresses in the U.S. and internationally. The company offers a range of related products, including foundations, adjustable bases, pillows, mattress covers, sheets, cushions, and various other accessories and comfort products. Its brands include TEMPUR, Tempur-Pedic, Sealy, and Stearns & Foster. Tempur Sealy sells its products through 650 company-owned stores, e-commerce sites, call centers, and third-party retailers.

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