UBS reiterates Buy rating on Somnigroup stock, maintains $91 price target

Investing.com - UBS maintained its Buy rating and $91.00 price target on Somnigroup (NYSE:SGI) in a research note released Friday. According to InvestingPro data, the stock is currently trading near its 52-week high of $88.15, with analyst targets ranging from $73 to $100.

UBS analyst Daniel Silverstein acknowledged that while many investors remain optimistic about SGI’s future earnings trajectory, some are questioning what catalysts remain to drive the stock higher from current levels.

The analyst noted this skepticism comes after Somnigroup has already doubled its Mattress Firm synergy targets, provided a more formal timeline for achieving these synergies, and gained significant market share in the U.S. over recent years.

Silverstein indicated these concerns are reasonable given the company’s recent accomplishments and current market position.

Despite these questions, UBS believes the market is "underappreciating key competitive dynamics that should benefit SGI as the cycle turns," suggesting potential upside remains for the mattress company’s stock.

In other recent news, Somnigroup International Inc. has reported its second-quarter results, with non-GAAP earnings per share slightly surpassing expectations, despite experiencing softer-than-anticipated sales. The company has successfully gained market share across all three segments, even in the face of challenging industry trends. In leadership developments, Steve Rusing has been appointed as the President and Chief Executive Officer of Mattress Firm, effective August 2025, succeeding Scott Thompson, who served as interim CEO. Additionally, Somnigroup has expanded its Board of Directors by appointing Christopher Cook as an independent director. Cook brings over 20 years of experience in the bedding retail sector. Analyst firm Piper Sandler has maintained its Overweight rating on Somnigroup stock, raising its price target to $100, citing significant upside potential in the company’s long-term earnings power. Raymond James also increased its price target for the company to $85, attributing the change to successful integration efforts. These developments reflect ongoing strategic and operational shifts within Somnigroup, as noted by analysts.

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