Bank of America Securities analyst Rafe Jadrosich has reiterated their bullish stance on TPX stock, giving a Buy rating on February 7.
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Rafe Jadrosich has given his Buy rating due to a combination of factors, primarily highlighting Tempur Sealy’s resilience and potential for significant growth. Despite the overall decline in the US mattress industry revenue from 2021 to 2024, Tempur Sealy managed to outperform by limiting its revenue drop and even gained market share through innovative product launches and strategic investments. This resilience is further demonstrated by the company’s ability to expand its EBIT margin during challenging times.
Furthermore, Jadrosich emphasizes the strategic acquisition of Mattress Firm as a catalyst for future growth. This move is expected to strengthen Tempur Sealy’s position in the market, as the company is likely to benefit from industry consolidation and the stabilization of demand. With industry volumes nearing trough levels, the potential for recovery presents a substantial upside. The stock’s valuation also remains attractive, trading at a discount compared to its peers, which supports the Buy rating with a raised price objective of $79.
Jadrosich covers the Consumer Cyclical sector, focusing on stocks such as DR Horton, Lennar, and Tempur Sealy. According to TipRanks, Jadrosich has an average return of 9.4% and a 55.79% success rate on recommended stocks.
In another report released on February 7, Loop Capital Markets also maintained a Buy rating on the stock with a $75.00 price target.