02:35 PM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target $6 to $56, 19.4x our 2024 EPS of $2.88 (cut from $2.92; 2025 up to $3.23 from $2.99) vs. the 17x long-term average forward P/E. Q1 adj-EPS of $0.50 (-6% Y/Y) beat by $0.02 on revenues of $1,189M (-1.5% Y/Y), $16M below consensus. Despite the sales decline, TPX seems to be gaining market share, as the broader bedding industry was likely down 10%-15% in Q1 vs. TPX's -2%. Adj-gross margin grew to 43.4% vs. $41.8% a year ago. Adj-operating margin fell to 12.6% vs. 12.7% a year ago due to investments in growth initiatives. Net leverage is now 2.9x vs. 3.2x a year ago. TPX expects gross margin expansion throughout the year, despite the weak consumer discretionary spending environment. Although it is uncertain when the bedding industry will bottom (the industry has essentially been operating in a recession over the last year), the positive is comparable figures get easier for TPX in the back half of 2024. The Mattress Firm acquisition is expected to close by year end. We keep a Hold view.