SNBR - Sleep Number stock hits near 18-month low after Wedbush cuts to Neutral
Sleep Number (SNBR -5.0%) stock hit its lowest level since Oct. 2020 after Wedbush Securities downgraded its rating to Neutral from Outperform. Wedbush also slashed SNBR's price target to $54 from $80 (~6% downside from Friday's close). Analyst Seth Basham warned of less favorable channel checks, negative demand signals from aggressive promotions and a deteriorating macro environment. While SNBR earlier reported Q1-to-date demand in the mid single range and high single digit growth in Feb., Basham noted that demand began shrinking after Presidents' Day for SNBR and other mattress firms. Basham raised concerns over SNBR's aggressive discounting in Mar., "giving back all of its price increases taken over the last year and then some despite facing higher costs and indicating limited pricing power," he wrote in a note to clients. SNBR's top-end products continue to see strong demand, but are still hampered by long lead times due to supply chain
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Sleep Number stock hits near 18-month low after Wedbush cuts to Neutral