William Blair analyst Phillip Blee has reiterated their bullish stance on SGI stock, giving a Buy rating on July 11.
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Phillip Blee has given his Buy rating due to a combination of factors that indicate potential growth for Somnigroup International. Despite near-term challenges such as tariffs and increased costs associated with the Sealy product launch, Blee sees room for upside in the company’s sales estimates, which are already above consensus. This optimism is supported by improved demand during major sales weekends, which suggests a recovery from earlier lows and potential for exceeding current sales guidance.
Furthermore, Blee anticipates that acquisition-related synergies, particularly through revamped marketing campaigns and enhanced brand penetration, could further bolster revenue. The company’s strategic price increases to offset tariff impacts also contribute to a positive outlook. Overall, Blee believes these elements could drive earnings per share growth in the mid-to-high-single-digit range, justifying the Buy rating for Somnigroup International.
In another report released on July 11, Piper Sandler also maintained a Buy rating on the stock with a $77.00 price target.