12:40 PM EDT, 07/23/2024 (MT Newswires) -- Fairfax's proposed acquisition of Sleep Country at $35 presents an attractive outcome for shareholders. The price more accurately reflects fair value and the implied valuation looks reasonable (~8.2x 2024E EV/EBITDA), writes BMO's Stephen MacLeod.

"We have for a long time appreciated Sleep Country's multi-year opportunity for growth and market share gains for everything "sleep." However, the near-term reality is that consumer spending remains choppy, and this offer provides shareholders with price certainty," MacLeod notes.

Revising target to match the $35 offer price. Rating lowered to Market Perform.

Price: 34.75, Change: +0.08, Percent Change: +0.23