Should Mattress Firm declare bankruptcy, as reported Monday by Reuters, the company would likely promptly close a material percentage of its stores in order to clean up its real estate portfolio, get out of bad leases, and improve cash flow and profitability, Piper Jaffray analyst Peter Keith tells investors in a research note. All in, he believes Mattress Firm store closures can result in $65M of incremental wholesale dollars for Tempur Sealy, and an EBITDA lift of greater than $25M. Further, Keith sees a "reasonable likelihood" of a Tempur, Mattress Firm reconciliation if Mattress Firm were to enter bankruptcy. The analyst says Tempur Sealy remains his favorite risk/reward idea for the next 12 months with potential for downside of 25% and potential upside of 80%. Keith keeps an Overweight rating on the shares with a $65 price target.