Sleep Number price target raised to $13 from $12 at Piper Sandler

Piper Sandler raised the firm’s price target on Sleep Number to $13 from $12 and keeps a Neutral rating on the shares following relatively in-line Q1 results and maintained full year guidance. Demand trends for Sleep Number appear to remain inline, the firm says. Guidance implies “a bit of a hockey stick recovery” in margins, but this is primarily driven by Sleep Number pivoting from notable year-over-year sales declines in the first half of 2024 to modest year-over-year sales growth in the second half of the year — particularly as it fully laps backlog revenue, Piper adds.