UPDATE: Piper Jaffray Color On SCSS Target Increase

Piper Jaffray, which raised its PT on shares of Select Comfort Corporation SCSS, is providing some color on the stock. “SCSS reported another strong quarter of outperformance - its now 9 in a row,” Piper Jaffray writes. “Sales totaled $193M (+22% Y/Y) and EPS of $0.30 were materially above consensus of $0.19. Gross margins improved 170bps on productivity, mix and pricing and offset by modest commodity pressure. “Consistent execution, a successful marketing campaign and a robust recovery in premium mattress sales continue to lead to material earnings growth. Based on continued execution, share gains and increased earnings expectations for 2011 we have increased our PT to $20 per share - representing ~60% upside from current levels. Reiterate Overweight rating - $20 PT based on 18x CY12 EPS.” Select Comfort Corporation closed Wednesday at $13.27.