KeyBanc Upgrades Mattress Firm Holding Corp. (MFRM) to Buy

KeyBanc upgraded Mattress Firm Holding Corp. (NASDAQ: MFRM) from Hold to Buy with a price target of $68.00. The change follows recent declines in the stock.

Analyst Bradley B. Thomas said, "While sales of mattresses are admittedly cyclical, in recent months, we have become increasingly confident in MFRM’s domestic roll-up story and its long-term earnings power, with the birth of a national chain underway. Following several recent large acquisitions, we believe MFRM has an improved organic growth outlook, as it can infill new West Coast and Midwest markets. Furthermore, we believe MFRM’s acquisitions will support synergies, while also driving new scale advantages in purchasing, private-label development, advertising and supply chain. Ultimately, with shares trading at 21x our 2015 EPS estimate, we believe MFRM share are positioned to increase in line with a 20% EPS forecast, and potentially more with possible multiple expansion for the stock. We are initiating a $68 price target, which represents 19% upside."

For an analyst ratings summary and ratings history on Mattress Firm Holding Corp. click here. For more ratings news on Mattress Firm Holding Corp. click here.

Shares of Mattress Firm Holding Corp. closed at $57.36 yesterday.

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