Mattress Firm Leading the Pack After Upgrade

On Wednesday, Nomura Equity Research initiated coverage on the mattress industry with some bullish comments. Analyst Jessica Schoen believes the industry “stands to benefit from any improvement in consumer confidence and higher price driven by product innovation.” Schoen's top mattress pick is Mattress Firm MFRM because they are “somewhat insulated from competitive pressures at the manufacturing level.” The analyst initiated a Buy rating and $56 price target. Shares are up 1.15 percent. The analyst also initiated coverage on Select Comfort SCSS with a Neutral rating and $18 price target. Schoen is cautious “due to missteps in the company's media strategy over the last year, and the potential looming impact of competition in Select's niche of the specialty mattress market.” Shares are up 0.29 percent. The last company Schoen initiated coverage on is Tempur Sealy TPX. The analyst has a Neutral rating and $55 price target. Schoen believes the company “can return to high-single-digit top-line organic growth by the end of 2016 through innovation, market expansion, and channel synergies.” Shares are up 0.35 percent.