BofA/Merrill analyst Curtis Nagle raised his price target for Tempur Sealy (TPX) to $100 from $85 and maintained a Buy rating after the company announced a new distribution agreement with Mattress Firm that will cover about 2,500 locations and include the Tempur, Searns & Foster and Sealy brands. In a research note to investors, Nagle says that this agreement, as well as the new retailer partnership with Big Lots (BIG) and Beder Bed Holding, should collectively add $400M in total sales and $85M-$100M in EBITDA starting in 2020. Nagle says he views the Mattress Firm announcement as a positive for the industry, as it should ensure it will "stick to rational pricing behavior." The analyst views the announcement as negative for Sleep Number (SNBR), as it significantly expands distribution for the Tempur which he believes has high overlap with Sleep Number.