Select Comfort sell-off overdone, says Piper Jaffray After Select Comfort issued a negative pre-announcement, Piper Jaffray thinks the company can correct its advertising issues in Q2. The firm thinks the company's long-term growth story remains intact, and it lowered its price target on the shares to $23 from $32 while maintaining an Overweight rating.
Select Comfort says Blue Clay plans 'risky, poorly conceived' Select Comfort sent a letter to its shareholders urging them to vote in support of its "strong financial performance and the superior shareholder returns." The letter also states, "Blue Clay is attempting to replace two incumbent Select Comfort directors with its own nominees in order to advance Blue Clay’s poorly conceived and risky changes to Select Comfort’s business. Blue Clay’s demands to 'immediately' and 'aggressively' expand the store base would have a significant adverse impact on Select Comfort’s business and shareholder value. Blue Clay’s fundamental lack of understanding of our business model and growth and profitability drivers led them to simply apply a competitor’s approach to a company unlike any other in the industry."