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Investing.com - Piper Sandler raised its price target on Somnigroup (NYSE:SGI) to $80.00 from $77.00 on Friday, while maintaining an Overweight rating on the mattress company’s stock. The new target sits within the broader analyst range of $69-$90, with the stock currently trading near its 52-week high of $75.69. According to InvestingPro analysis, the stock appears overvalued at current levels.
The firm cited Somnigroup’s Q2 results and noted that the Mattress Firm integration is proceeding ahead of schedule. Piper Sandler highlighted a newly projected $100 million in EBITDA from revenue synergies expected by 2026 as a significant development. The company has demonstrated strong momentum, with revenue growing 8.96% over the last twelve months and maintaining a healthy gross profit margin of 44.58%.
While Somnigroup reported a challenging industry backdrop during Q2, the company indicated that Q3 has started on a stronger note. The Tempur brand outperformed expectations in the second quarter, potentially benefiting from increased exposure at Mattress Firm locations.
Somnigroup expects its Sealy brand to outperform in the second half of the year, though this shift may present a modest mix headwind for the company’s overall results.
Piper Sandler continues to project 25%-30% compound EPS growth for Somnigroup over the next three years, supporting its bullish long-term thesis on the stock.
In other recent news, Somnigroup International Inc. reported its Q2 2025 earnings, highlighting a slight beat in earnings per share (EPS). The company posted an adjusted EPS of $0.53, surpassing the forecast of $0.52. Revenue for the quarter was $1.9 billion, aligning with analysts’ expectations. Despite the earnings beat, the stock experienced a dip in pre-market trading, reflecting some investor concerns. These developments are part of the company’s ongoing financial performance updates. Analysts from various firms continue to monitor Somnigroup’s financial health and market strategies. Investors are closely watching how these results will impact future projections and company strategies.
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