Wedbush lowered the firm’s price target on Tempur Sealy to $45 from $50 and keeps an Outperform rating on the shares. The firm also removed the name from its Best Ideas List on softer industry demand and lower likelihood of an acquisition. While Wedbush sees limited downside risk to Q1 consensus forecasts, Tempur could modestly reduce its full year 2023 outlook when it reports earnings because of weaker-than-expected demand in the past two months. While the firm’s initial checks with industry contacts suggested that bricks-and-mortar sales over the Presidents’ Day sales period were flattish to slightly positive, subsequent conversations were more varied, with some regional retailers indicating demand declined as much as high single digit year-over-year during the holiday period. Checks for March leaned negative with contacts calling out more pronounced demand declines during the month.
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