Tempur Sealy International Inc. TPX is well positioned to generate growth above the industry average through its company-specific initiatives, according to Goldman Sachs.
The Tempur Sealy analyst: Susan Maklari launched the Tempur Sealy cover with a buy rating and price target of $34.
Tempur Sealy takeaway meals: The company is expected to continue delivering industry-leading revenue growth, with a compound annual growth rate of 4% through 2024, Maklari said in Thursday’s kickoff note.
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Tempur Sealy has invested in higher margin expansion opportunities, including “growing its more profitable direct sales channel faster than brick and mortar, launching successful new products across brands and across businesses international,” the analyst said.
Tempur Sealy could achieve 190 basis points of EBIT margin expansion between 2022 and 2024, it said.
“As Tempur positions itself as a competitive, full-service provider of private label and branded products, we anticipate this could represent a $500-600 million opportunity. This, along with the benefits of increased industry consolidation, should generate benefits over time.
TPX Price Action: Shares of Tempur Sealy were trading up 2.74% at $28.52 as of midday Thursday.