William Blair analyst Phillip Blee has reiterated their bullish stance on SGI stock, giving a Buy rating on August 11.
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Phillip Blee has given his Buy rating due to a combination of factors including Somnigroup International’s strong earnings performance and promising future outlook. Despite a slight shortfall in sales for the quarter, the company’s earnings surpassed expectations, prompting an upward revision of estimates for adjusted EBITDA and EPS for 2025. Blee forecasts sales to reach $7,482 million in 2025 and $8,049 million in 2026, which is above consensus estimates, and anticipates a significant growth in EPS by nearly 30% in 2026.
Additionally, Blee sees potential upside in the second half of 2025 and into 2026, as the industry environment appears to be stabilizing and improving. The acquisition of Mattress Firm is expected to yield substantial revenue synergies, with Tempur Sealy’s share of sales projected to increase, contributing significantly to adjusted EBITDA. Furthermore, there are additional growth opportunities not yet factored into current guidance, such as optimizing third-party brand partnerships and enhanced advertising campaigns, which could further benefit Somnigroup’s performance.
In another report released on August 11, Truist Financial also maintained a Buy rating on the stock with a $85.00 price target.