What we said on January 5, 2012:
Serta has been perceived as a low-quality mattress producer. This is changing as it rolls out iComfort, a direct competitor to TPX's line. Our price target is $45.
What happened: In April 2012 Tempur-pedic posted disappointing sales and earnings, lowering guidance for the remainder of 2012. Shares collapsed from a high of $87 to $20, or 75%.