Piper Sandler analyst Peter J. Keith raised the firm’s price target on Somnigroup (SGI) to $77 from $68 and keeps an Overweight rating on the shares. The firm notes Q1 EPS beat expectations, but 2025 guidance was reduced more than expectations. There are a lot of moving pieces with the Somnigroup model given the MFRM acquisition, tariffs, the new Sealy line rollout, and a weaker-than-expected industry backdrop. But looking through the noise, Piper believes the company is still taking market share, is seeing the industry backdrop improve as of late, and has meaningful margin drivers on the horizon.
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