Wedbush raises Tempur Sealy price target to $45, adds to Best Ideas List

Wedbush analyst Seth Basham raised the firm’s price target on Tempur Sealy to $45 from $30 and added the stock to his firm’s Best Ideas List, while keeping an Outperform rating on the shares. The mattress industry outlook for the next year is weak, but the analyst believes "the worst is likely now behind us" following double-digit industry unit declines in 2022 that have more than fully reversed the pull-forward in demand during the pandemic. With industry declines likely to ease, Tempur Sealy’s share gains potentially accelerating due to consolidation, commodity input costs rolling over and the possibility of very accretive acquisitions-namely Mattress Firm-there are multiple ways for the shares to outperform in 2023, Basham argues.