Somnigroup upgraded to Buy from Hold at Jefferies

Jefferies analyst Jonathan Matuszewski upgraded Somnigroup (SGI) to Buy from Hold with a price target of $88, down from $90. The firm says the stock’s 25% selloff provides an “attractive set-up” for the top producer and retailer of bedding. Somnigroup has “radically strengthened its moat” due to verticalization over the past 12 months, the analyst tells investors in a research note. Jefferies sees Somnigroup’s pricing largely offsetting higher input cost headwinds.