Sales Improve at SCSS

Analyst Bradley B Thomas of KeyBanc Capital Markets maintains his “buy” rating on Select Comfort Corporation (NASDAQ: SCSS). The target price for SCSS is set to $9.

SCSS has announced its intention to raise capital through a public offering. The analyst believes that Select Comfort would sell around three to four million shares that would help it eliminate all the debts. The completion of this capital raising exercise will remove the overhang on the company’s stock, KeyBanc Capital Markets says.

The analyst expects Select Comfort’s sales to continue to accelerate due to improved consumer confidence and improving industry fundamentals. The recent ISPA industry data and channel checks suggest that mattress sales are growing and the trend will continue. The company’s shares are attractively valued at present, KeyBanc Capital Markets adds.