Reaffirmed 2028 Targets, Robust Cash Returns, and Conservative Forecasts Underscore Buy Rating and $106 Price Objective

Rafe Jadrosich, an analyst from Bank of America Securities, reiterated the Buy rating on Somnigroup International. The associated price target is $106.00.

Rafe Jadrosich has given his Buy rating due to a combination of factors, primarily management’s reaffirmation of ambitious 2028 earnings targets and the detailed roadmap supporting these goals. The company expects steady mid‑single‑digit revenue growth, significant EBITDA expansion, and about 400 basis points of operating margin improvement driven by volume leverage, productivity gains, and synergies across its segments.

Rafe also highlights stronger‑than‑expected free cash flow and a sharply higher capital return plan, with $3.3 billion in total shareholder returns and roughly $2.8 billion earmarked for share repurchases, exceeding prior assumptions. Combined with encouraging recent demand trends and multiple potential upside drivers to the 2028 EPS target, he views current forecasts as conservative, which supports maintaining a Buy rating and a $106 price objective.

In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $105.00 price target.