Sleep Number price target lowered to $22 from $32 at UBS

UBS lowered the firm’s price target on Sleep Number to $22 from $32 and keeps a Neutral rating on the shares. The firm’s Q3 comparable sales and earnings estimates are below consensus estimates and it thinks Sleep Number will lower its Q4 guidance to reflect the “weak bedding backdrop.” Google searches for Sleep Number dropped 9% in Q3 versus 12% in Q2, while Similarweb data show visitors to the company’s website declined 20% in Q3 virus 22% in Q2, the analyst tells investors in a research note. UBS says Sleep Number has “limited flexibility to absorb further degradation” in its profits.