Investors should buy Tempur Sealy as the home furnishings company is a "solid growth story" that could surge 22% from here, according to Goldman Sachs. Analyst Susan Maklari initiated coverage of Tempur Sealy with a buy rating, saying in a Thursday note that the company is compelling as it expands into new higher-margin opportunities. "We believe Tempur can continue to outperform broader home furnishings peers as successful new product introductions, investments in technology and production allowing for higher service levels, and geographic expansion combine to drive growth ahead of the bedding industry," Maklari wrote. "In our view, the successful execution of management's strategy will be reflected in revenues up 11% from 2021-2024 with EPS outperforming, up 25% over the same time." The analyst cited Tempur Sealy's leading industry position, and its investments into greater margin expansion opportunities, as reasons for outperformance from here -- even as shares are down 40% this year, and roughly 45% off its highs. The world's largest bedding provider has grown revenue at a compounded rate of 8% since 2015, compared to the broader sector's 5% per year, on its successful range of products, according to the note. It's also quickly expanding its direct-to-consumer capabilities, which could lead to stronger margins as it's more profitable than its brick-and-mortar channel, the note read. "In our view, Tempur Sealy is well positioned to realize above average growth as it delivers on company-specific initiatives driving EPS ahead of expectations," Maklari wrote. Goldman Sachs has a 12-month price target of $34 on the stock, implying roughly 22% upside from Wednesday's closing price of $27.76. Shares ticked up 0.4% in Thursday premarket trading. —CNBC's Michael Bloom contributed to this report.