S&P Capital IQ Reiterates its BUY Rating on Tempur Pedic International, Target Price Raised

October 24 00:00 2011

New York, October 24 (RainbowNewsLine.com) – Analyst Jim Yin of S&P Capital IQ reiterates his BUY rating on the shares of Tempur-Pedic International (NYSE:TPX), while raising his estimates for the company. The target price has been raised from $74 to $77.

Analyst Jim Yin, in a research report published on October 22, mentions that the company has reported its Q3 EPS ahead of the estimates driven by better brand awareness in the market, as the total sales rose 30% to $383 million. The analyst expects the company to witness robust earnings momentum with 20% sales growth in 2012, although margins are likely to be hurt by rising marketing expenses and increasing commodity costs. The EPS estimates for 2011 and 2012 have been raised from $3.04 to $3.17 and from $3.69 to $4.03, respectively.