Oppenheimer Reiterates Perform Rating on Tempur-Pedic International on Completed Sealy Acquisition

In a report published Friday, Oppenheimer analyst Joseph Altobello reiterated a Perform rating on Tempur-Pedic International (NYSE: TPX).

In the report, Altobello noted, “We are updating estimates for Tempur-Pedic (soon to be known as Tempur Sealy) to reflect the recently completed acquisition of Sealy Corp. As expected, the transaction results in meaningful EPS accretion for TPX, though it also significantly levers the company's balance sheet while increasing its exposure to the highly competitive innerspring market. As such, we believe current valuation is fair, and so we are reiterating our Perform rating on the shares.”

Tempur-Pedic International closed on Thursday at $45.42.