Piper Jaffray Reiterates Overweight Rating on Sealy (ZZ)

Despite news that Sealy ZZ reported May-quarter results slightly below consensus expectations, Piper Jaffray reiterated its Overweight rating on Sealy this morning. Piper Jaffray notes that "Sealy has done a good job of aligning the business with market dynamics and we continue to recommend the stock as a 12-month idea." Sales for the quarter came in at $317M vs. consensus $320M. Piper Jaffray analysts comment that "The 6% Y/Y growth represents the third consecutive quarter of revenue expansion - a key improvement we expect will continue." Piper Jaffray maintains a $5 price target on Sealy shares. Sealy is the world's largest mattress manufacturer and marketer. Shares are trading down this morning, to $2.89.