Will This Downgrade Hurt Mattress Firm Holding (MFRM) Stock Today?

NEW YORK (TheStreet) -- Mattress Firm Holding Corp.  (MFRM) shares were downgraded to "hold" from "buy" by analysts at Keybanc. The company's $50 price target was also removed on Monday.

Mattress Firm Holding shares are down -0.13% to $44.88 in pre-market trading today.

"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'," said analysts.

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Separately, TheStreet Ratings team rates MATTRESS FIRM HOLDING CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MATTRESS FIRM HOLDING CORP (MFRM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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