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Research Alert: CFRA Keeps Hold View On Shares Of Somnigroup International

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target from $100 to $80, based on a 25x multiple applied to our updated 2026 EPS estimate of $3.19. While this multiple represents a premium to historical averages, we believe it is justified by the company's transformation into a vertically integrated leader with both a clear structural growth path and cyclical upside. Structurally, the company's M&A strategy provides a defined path to over $325 million in run-rate EBITDA synergies while de-risking the business model, as 65% of sales are now direct-to-consumer. Cyclically, with the bedding industry operating at trough volumes, SGI's significant operating leverage positions it to capture oversized profit growth during an eventual market recovery. Reflecting a more cautious view on near-term margin expansion as a result of higher input costs and a more cautious consumer, we reduce our 2026 EPS estimate from $3.34 to $3.19 and our 2027 EPS forecast from $3.98 to $3.89.

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