Somnigroup International

SGI · NYSE

$63.94+$1.14 (+1.82%)TodayMarket closed · Oct 20, 7:31 PM ET

Prev close $62.80

SGI analyst rating

BuyConsensus of 8 analysts over the last 12 months. 100% rate it a buy.

Strong buy0
Buy8
Hold0
Underperform0
Sell0

12-month price target · 11 analysts

Average $95.31 (+49.1% upside)

Low: $80.80
Now: $63.94
High: $110.25

Upgrades and downgrades

The latest rating actions, newest first

SGI analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Stephens & Co.	Sep 14, 2026	Upgrade	Equal-Weight → Overweight	$66.00 → $80.00	54%
Piper Sandler	Sep 3, 2026	Maintains	Overweight	$95.00 → $100.00	59%
UBS	Sep 3, 2026	Maintains	Buy	$94.00 → $102.00	0%
UBS	Aug 7, 2026	Maintains	Buy	$105.00 → $94.00	0%
Piper Sandler	Aug 7, 2026	Maintains	Overweight	$102.00 → $95.00	59%
Truist Securities	Aug 7, 2026	Maintains	Buy	$115.00 → $100.00	53%
Morgan Stanley	Jul 27, 2026	Initiates	Overweight	$95.00	0%
Zelman & Assoc	Jun 23, 2026	Initiates	Outperform	$99.00	—
UBS	May 8, 2026	Maintains	Buy	$110.00 → $105.00	0%
UBS	Apr 30, 2026	Maintains	Buy	$115.00 → $110.00	0%

The case for and against

Updated Oct 15, 2026

Bull case

Somnigroup International is positioned favorably by a raised full-year 2026 outlook, with revenue guidance lifted to $8.80-$8.85B, adjusted EBITDA to $1.51B, and EPS to $2.95-$3.25, reflecting confidence in integration benefits and operating momentum. The pending LEG acquisition appears especially constructive because it is expected to close before the end of Q3, add about $0.40 of EPS accretion before synergies, contribute roughly $0.30 more from synergies, and help reduce leverage to support faster buybacks later in 2H. Management is also tightening supplier standards and emphasizing LEG-branded spring content in marketing, which should shift more business inward, strengthen premium positioning, and support the path toward $5.15 of EPS by 2028.

Bear case

Somnigroup International is facing a deteriorating fundamental backdrop, with the mattress industry still weak after declining 4 straight years and potentially entering a 5th year of declines, while consumer confidence remains near a 10-year low and store traffic is poor despite decent closing rates. Updated guidance points to lower sales growth across all segments, full-year net sales down $200M to about $7.6B, and adjusted EPS reduced to $2.85-$3.15, with Mattress Firm turning slightly negative and only modest low-single-digit growth expected in Tempur Sealy North America and International. Although management cites $75M of synergies and gross margin above 45%, the benefits are delayed until 2027-2029, exclude foam and adjustable-bases synergies, and leave the stock exposed to commodity costs, retailer risk, macro pressure, and acquisition execution uncertainty.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.