Tempur-Pedic International started at 'Hold'

Wedbush Morgan Securities analyst Joan Storms said the Lexington, Ky.-based company has significant opportunities to grow by expanding into new territories and improving its sales force productivity.

However, companies in the home furnishing industry will remain under pressure as consumers scale back their spending due to soaring gas prices.

Storms set a $9.50 target on the stock, which implies it will about 19 percent from its closing price Thursday.

The stock traded at an all-time low of $7.78 Wednesday, and Morgan Keegan analyst Laura Champine said that may represent a "buying opportunity" for the stock, which she rates "Outperform."

"We suspect bearish sentiment in shares of Tempur-Pedic may have reached levels signaling capitulation, with 45 percent of the float sold short and negative sentiment engulfing the stock," she wrote.

In afternoon trading, the stock added a penny to $8.01.