CSPR - BofA picks favorites in the bedding sector

Bank of America dives into the bedding sector in a fresh note posted today.BofA drops its rating on Casper Sleep (CSPR) to Underperform from Neutral after what it calls disappointing Q3 results and continued sales underperformance relative to peers. "The fact that the company is losing market share peers in the strongest bedding market ever is a concern," updates analyst Curtis Nagle. Nagle says online sales are decelerating for CSPR and points to weak traffic to its company-owned stores. The price objective on Casper Sleep is dropped to $5.50, which works out to 0.6X the 2021 EV/sales estimate/ The firm continues to prefer Buy-rated Tempur-Sealy International (TPX) and Purple Innovation (PRPL), while Sleep Number (SNBR) catches an upgrade from BofA to a Neutral rating Underperform. Shares of Casper Sleep are down 3.45% premarket, while Sleep Number is 0.44% higher.Compare bedding stocks side by side.

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BofA picks favorites in the bedding sector