BofA raises Tempur Sealy price target to $67, maintains Buy

On Wednesday, BofA Securities updated its outlook on Tempur Sealy International Inc. (NYSE:TPX) shares, raising the price target to $67.00 from the previous $60.00, while reaffirming a Buy rating on the stock. The stock, currently trading near its 52-week high of $61.60, has delivered a robust 17% return over the past year. The adjustment follows a recent investor meeting in Las Vegas where Tempur Sealy’s top executives, including CEO Scott Thompson and CFO Bhaskar Rao, presented the company’s direction and new product launches. According to InvestingPro analysis, the stock appears overvalued relative to its Fair Value, though analysts maintain a bullish consensus.

During the event, Tempur Sealy’s management team, which also featured North America CEO Cliff Buster and EVP of International Hansbar Wijnand, expressed confidence in the company’s prospects for 2025. They anticipate continuing to outperform the market, driven by new product introductions and expansion in international markets. This confidence is supported by the company’s strong financial health score of 2.76 (rated as GOOD) on InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ top stocks.

The raised price objective is now based on a 20x multiple of the firm’s estimated 2026 earnings per share (EPS), a notable increase from the prior valuation that used the 2025 EPS estimate. The 20x multiple exceeds Tempur Sealy’s five-year average of 13.5x.

BofA Securities justifies the premium multiple by pointing to Tempur Sealy’s impressive market share gains and the potential for an industry-wide recovery. The firm’s analysis suggests that Tempur Sealy’s strategic initiatives and product innovation are well-positioned to foster continued growth and market leadership.

In other recent news, Tempur Sealy International Inc. has been the focus of various financial firms. Loop Capital Markets has increased its stock target for the company to $70 while maintaining a Buy rating. This follows a potential acquisition of Mattress Firm, expected to commence in 2025, which analysts believe will significantly add value to Tempur Sealy. Meanwhile, Piper Sandler has reaffirmed its Overweight rating on Tempur Sealy, indicating strong potential for the stock. KeyBanc Capital Markets has also spotlighted Tempur Sealy as a top stock pick for 2025, highlighting the company’s market share growth. These are recent developments that investors might find noteworthy.

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