Piper Jaffray Maintains Sealy Overweight Rating And PT Of $3.50 (ZZ)

In a report published today, Piper Jaffray maintains its Sealy ZZ Overweight rating and $3.50 price target. In the report, Piper Jaffray notes, "On balance, Sealy's December quarter financial results lack shine. Net sales for the December quarter were flat Y/Y at $297M - below the consensus at $326M. U.S. sales declined approximately 3% Y/Y as the innerspring category did not produce growth during the year. As the result of improvement to international operations, gross margin increased 35bps to 41.4% and gross profit increased $1.5M during the quarter. SG&A was down $6M Y/Y as tight cost controls and solid execution continue to play out. Net income for the quarter was $3.5M and adjusted earnings per share were $0.03 and compared to the Street at $0.02." Sealy shares are currently trading at $2.97, -0.67% from Thursday's market close.