Somnigroup International (NYSE:SGI) Given New $94.00 Price Target at UBS Group

Key Points

• UBS cut Somnigroup’s price target to $94 from $105 but maintained a “buy” rating, implying roughly 44% upside from the stock’s $65.35 price. The consensus view remains “Moderate Buy,” with an average target of $94.50.
• Somnigroup’s quarterly EPS of $0.58 met estimates and improved from $0.53 a year earlier, while operating cash flow reached a record $236 million. However, revenue declined 3% year over year to $1.82 billion, reflecting weakness at Mattress Firm and broader industry pressures.
• Analysts have moderated expectations: fiscal 2026 EPS guidance is $2.85–$3.15, with the low end below the $3.15 consensus, and multiple brokerages recently lowered their price targets despite retaining bullish ratings.

Somnigroup International (NYSE:SGI - Get Free Report) had its target price cut by equities research analysts at UBS Group from $105.00 to $94.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's target price would indicate a potential upside of 43.84% from the stock's current price.

Several other equities analysts have also recently weighed in on SGI. Bank of America cut their target price on shares of Somnigroup International from $106.00 to $96.00 and set a "buy" rating for the company in a research note on Tuesday, April 14th. Piper Sandler reiterated an "overweight" rating and issued a $95.00 price target (down from $102.00) on shares of Somnigroup International in a research note on Friday. Weiss Ratings downgraded shares of Somnigroup International from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Morgan Stanley initiated coverage on Somnigroup International in a research report on Monday, July 27th. They set an "overweight" rating and a $95.00 price objective for the company. Finally, Truist Financial reduced their target price on Somnigroup International from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Somnigroup International currently has a consensus rating of "Moderate Buy" and an average price target of $94.50.

Somnigroup International Price Performance

NYSE SGI traded up $0.48 during trading hours on Friday, reaching $65.35. The company's stock had a trading volume of 3,294,608 shares, compared to its average volume of 2,609,706. The firm's 50-day moving average price is $72.26 and its 200-day moving average price is $77.58. The company has a quick ratio of 0.38, a current ratio of 0.78 and a debt-to-equity ratio of 1.41. Somnigroup International has a 1 year low of $60.39 and a 1 year high of $98.56. The company has a market capitalization of $13.75 billion, a price-to-earnings ratio of 26.67, a PEG ratio of 1.30 and a beta of 1.20.

Somnigroup International (NYSE:SGI - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.58 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.58. Somnigroup International had a net margin of 6.80% and a return on equity of 19.62%. The business had revenue of $1.82 billion during the quarter. During the same period last year, the business earned $0.53 earnings per share. The company's quarterly revenue was down 3.0% compared to the same quarter last year. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. On average, equities research analysts predict that Somnigroup International will post 3.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Somnigroup International

Several institutional investors have recently bought and sold shares of SGI. Brown Miller Wealth Management LLC increased its position in Somnigroup International by 2.4% during the fourth quarter. Brown Miller Wealth Management LLC now owns 4,820 shares of the company's stock valued at $430,000 after acquiring an additional 113 shares during the last quarter. HB Wealth Management LLC lifted its holdings in shares of Somnigroup International by 1.0% in the 4th quarter. HB Wealth Management LLC now owns 11,885 shares of the company's stock worth $1,061,000 after acquiring an additional 115 shares during the last quarter. Sanctuary Advisors LLC lifted its holdings in shares of Somnigroup International by 5.1% in the 4th quarter. Sanctuary Advisors LLC now owns 2,912 shares of the company's stock worth $260,000 after acquiring an additional 141 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of Somnigroup International by 1.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 10,926 shares of the company's stock worth $975,000 after purchasing an additional 142 shares during the period. Finally, Fifth Third Bancorp boosted its stake in shares of Somnigroup International by 8.1% during the 4th quarter. Fifth Third Bancorp now owns 1,974 shares of the company's stock worth $176,000 after purchasing an additional 148 shares during the period. Institutional investors own 99.86% of the company's stock.

Key Somnigroup International News

Here are the key news stories impacting Somnigroup International this week:

• Positive Sentiment: Second-quarter adjusted earnings improved year over year, with EPS of $0.58 versus $0.53 a year earlier, while gross margins expanded. Operating cash flow reached a record $236 million, supported by synergy and efficiency gains. Somnigroup International Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment remains generally constructive. Piper Sandler reaffirmed an “overweight” rating with a $95 price target, while Truist maintained a “buy” rating with a $100 target. Brokerages collectively assign SGI an average “moderate buy” rating, suggesting substantial long-term upside if demand and integration improve. Analyst rating updates
• Neutral Sentiment: Somnigroup declared a quarterly dividend of $0.17 per share, payable September 3 to shareholders of record on August 20. The dividend provides ongoing shareholder income, although its approximately 1% yield is unlikely to be the primary trading catalyst. Somnigroup Announces Third Quarter Cash Dividend
• Negative Sentiment: Revenue fell 3% year over year to $1.82 billion and missed analyst expectations, with the Mattress Firm decline contributing to weaker sales. Management also cited industry softness and inflationary pressure, raising concerns about near-term demand.
• Negative Sentiment: Fiscal 2026 EPS guidance was reduced to $2.85–$3.15, compared with the $3.15 analyst consensus. Although quarterly EPS met estimates, investors appear to be focusing on the lack of a clear earnings beat and the lower end of the new outlook. Somnigroup Q2 Earnings Meet, Sales Miss on Mattress Firm Decline
• Negative Sentiment: Both Piper Sandler and Truist lowered their price targets despite retaining bullish ratings, signaling that analysts see meaningful upside but have moderated their near-term expectations.

Somnigroup International Company Profile

Somnigroup International Inc, together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source