Optimistic Outlook for Somnigroup International Despite Sales Guidance Reduction

William Blair analyst Phillip Blee has maintained their bullish stance on SGI stock, giving a Buy rating on May 9.

Phillip Blee’s rating is based on several factors that suggest potential upside for Somnigroup International. Despite a recent reduction in the company’s sales and EPS guidance for 2025, Blee sees room for sales growth, particularly in the international segment, which is expected to grow over 6%. This optimism is supported by the potential for sales upside during major industry sale events, such as the upcoming Memorial Day Weekend, which could serve as a pivotal moment for the company’s performance.
Additionally, while the impact of tariffs and trade deals remains uncertain, management’s confidence in offsetting these challenges in the latter half of the year adds to the positive outlook. The company’s ability to adapt its sourcing strategies in response to trade issues further supports the Buy rating. Overall, Blee believes that the company’s current estimates are conservative and that there is a realistic opportunity for Somnigroup International to exceed expectations, leading to a solid performance in the upcoming quarters.

In another report released on May 9, Piper Sandler also maintained a Buy rating on the stock with a $77.00 price target.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SGI in relation to earlier this year.