Tempur-Pedic (NYSE:TPX) 2011 Outlook Looks Strong

Tempur-Pedic's (NYSE:TPX) success in Europe with their Cloud line, along with the introduction of their Contour line in the U.S. this year, should be solid catalysts through 2012 for the company.

Barclays says, "...Results continue to be driven by strong performance of the Cloud line, and in particular the Cloud Luxe, which has exceeded expectations and is still only partially rolled out."

"Looking ahead, top line growth is expected to come from higher ASPs, as well as acceleration in international growth. In addition to the new "Contour" collection, which will replace the original Tempur line, carrying a higher average price...Given solid trends and increased visibility, we are raising our 2011 EPS estimate to $2.75 from $2.35 and establishing our 2012 EPS estimate of $3.25."

Barclays reiterates an "Equalweight" rating on Tempur-Pedic (NYSE:TPX), which closed Friday at $43.65, gaining $4.25, or 10.79 percent. They boosted their price target on Tempur-Pedic from from $36 to $45.