Guggenheim Remains a Hold on Tempur Sealy

In a report released today, Robert Drbul from Guggenheim maintained a Hold rating on Tempur Sealy (NYSE: TPX). The company’s shares opened today at $48.19.

Drbul observed:

“We remain NEUTRAL. Total revenue declined 10% to $648mn (vs. our -11% est), including a 17% decline in North America to $485mn (down slightly ex-MFRM vs. our +1%). Tempur sales increased LSD%, while Sealy sales were down LSD%. North America was impacted by a highly promotional environment, which included heavy discounting at Mattress Firm, continued weakness at select department stores, and a temporary headwind relating to upcoming launches. Importantly, business began to pick up in April. International continues to perform well, increasing 17% (+8% in CC), with wholesale +18% and direct +12%, as growth is being bolstered by the launch of new Tempur-Pedic products in 2017. TPX delivered constant currency growth in all three major International geographies, Europe, Asia Pacific, and Latin America.”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 14.8% and a 77.3% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Ascena Retail Group.

Tempur Sealy has an analyst consensus of Moderate Buy, with a price target consensus of $58.

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The company has a one-year high of $68.05 and a one-year low of $41.10. Currently, Tempur Sealy has an average volume of 1.07M.

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Tempur Sealy International, Inc. develops, manufactures and markets and distributes bedding products. Its products include mattresses, adjustable bases, pillows and other sleep and relaxation products. It operates through North America and International segments.