Shares of mattress maker Tempur Sealy International Inc. TPX, +6.69% soared 8.5% in premarket trade, putting them on track to open at the highest level since January 2018, after mattress retailer Mattress Firm said Chief Executive Steve Stagner resigned. Wedbush analyst Seth Basham said he sees Stagner’s resignation as a “positive development” for Tempur Sealy, given his “rocky” relationship with Tempur Sealy senior management. “With Mr. Stagner’s resignation, the probability of [Tempur Sealy] rekindling its distribution relationship with [Mattress Firm] rise, in line with our view over the past year,” Basham wrote in a note to clients. Tempur Sealy’s stock had plummeted 28% on Jan. 30, 2017 after the company said it terminated all contracts with Mattress Firm as a dispute over supply agreements couldn’t be resolved. Mattress Firm, which is owned by Steinhoff International Holdings N.V. SNH, +0.65% filed for bankruptcy in October 2018, then emerged from bankruptcy in November. Tempur Sealy’s stock has soared 43.7% year to date through Tuesday, while the S&P 500 SPX, -0.61% has gained 14.8%.
Story cited here.
