KeyBanc Downgrades Mattress Firm Holding Corp. (MFRM) to Hold

KeyBanc downgraded Mattress Firm Holding Corp. (NASDAQ: MFRM) from Buy to Hold and removed its price target (prior $50.00).

Analyst Bradley B. Thomas said, "Mattress Firm Holding Corp. (MFRM-NASDAQ) has been one of the best performing stocks in our coverage, up 4.4% year-to-date (vs. a 9.0% decline for the S&P Retail Index). Valuation is currently at the higher-end of our coverage universe, and the stock is near our price target. Given a significant new product rollout schedule this spring, we see unique risk to 1Q results and are lowering our estimate. Our new EPS estimates are below consensus for 2014 and 2015. As a result of valuation and the near-term potential risk to estimates, we are downgrading shares to HOLD from BUY. In spite of our cautious view on the 1Q and the current valuation, we remain positive on the management team, the longer-term growth story, and industry roll-up opportunity. As such, we would revisit our outlook on shares again after these concerns have passed or at a lower valuation."

For an analyst ratings summary and ratings history on Mattress Firm Holding Corp. click here. For more ratings news on Mattress Firm Holding Corp. click here.

Shares of Mattress Firm Holding Corp. closed at $44.94 yesterday.

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