BofA lowered the firm’s price target on Somnigroup (SGI) to $96 from $106 and keeps a Buy rating on the shares after the company announced an agreement to acquire Leggett & Platt (LEG) in an all-stock merger for $2.5B. The firm, which thinks Leggett would be a good strategic fit and Somnigroup paid an attractive price, estimates 12% EPS accretion in 2027 pre-synergies. However, the firm lowers its 2026 EPS by 4%, in-line with the mid-point of Somnigroup’s guidance, to reflect input inflation and a tougher macro environment.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SGI:
- Somnigroup International to Acquire Leggett & Platt in Merger
- Midday Fly By: Goldman reports Q1 beat, Baker Hughes to sell Waygate
- Morning Movers: Leggett & Platt gains, Somnigroup lower after $2.5B deal
- Somnigroup to Acquire Leggett & Platt in All-Stock Deal
- Somnigroup to acquire Leggett & Platt in $2.5B all-stock transaction