Stephens starts Somnigroup with neutral on uncertain housing outlook

Stephens initiated last night coverage of Somnigroup (SGI) with an Equal Weight rating and $89 price target The firm says Somnigroup is the largest bedding company in the world. The mattress business is “very sensitive to housing, whose outlook is uncertain,” the analyst tells investors in a research note. Stephens believes the mattress business is also still digesting a period of over-consumption.