Tempur Sealy drops as Piper Sandler flags tepid Memorial Day weekend sales

Sleep Number

01/06/2022 16:04

(Updates)
    ** Shares of Tempur Sealy International  TPX.N  down 5.9% at
$24.83 after Piper Sandler downgrades stock to "neutral" from
"overweight"
    ** TPX on pace to give up last week's gains and among
biggest NYSE-listed pct losers
    ** Brokerage says its research into Memorial Day weekend
shopping, a key holiday period for mattress makers, suggests
retailers saw disappointing sales
    ** Says round of retailer and e-com checks shows likely
sales decline of 5-15% during Memorial Day weekend 
    ** Cuts PT on TPX by $8 to $28; Wall Street has median PT of
$37 and avg. "buy" rating on stock -Refinitiv data
    ** "A sluggish (Memorial Day weekend) suggests several 
challenged months ahead for the industry" - Piper Sandler
    ** Shares of rival mattress makers Purple Innovation
 PRPL.O  and Sleep Number  SNBR.O  also down ~4% each 
    ** TPX down ~47% this year as mattress makers struggle to
sustain demand seen during peak of pandemic  urn:newsml:reuters.com:*:nL3N2WP3QY; SNBR
down 43% YTD, while PRPL has dropped 63% 

 (Reporting by Subhadeep Chakravarty and Uday Sampath in
Bengaluru)
 ((subhadeep.chakravarty@thomsonreuters.com))