Piper Sandler has revised its price target for Somnigroup (SGI, Financial), lowering it from $70 to $68, while maintaining an Overweight rating on the stock. This adjustment comes after analyzing the latest PSC Mattress Retailer survey results for March, which showed a year-over-year sales change of approximately -0.9% to flat on both mean and median bases. This marks an improvement compared to the previous month.
Despite the seemingly improved figures, Piper Sandler highlighted that, when accounting for shifts in the calendar due to Leap Day and Easter, the sales trend for both February and March likely fell into negative mid-single-digit percentages year-over-year. For the first quarter overall, the sales reported a slight decline of about 1% from the fourth quarter.
Looking ahead to the second quarter, Piper Sandler expresses a surprisingly optimistic view, despite potential challenges. The firm notes that the Easter timing could negatively affect April's performance, and broader declines in consumer confidence may also impact sales. Nonetheless, expectations remain cautiously positive.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Somnigroup International Inc (SGI, Financial) is $74.50 with a high estimate of $80.00 and a low estimate of $62.00. The average target implies an upside of 28.25% from the current price of $58.09. More detailed estimate data can be found on the Somnigroup International Inc (SGI) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Somnigroup International Inc's (SGI, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Somnigroup International Inc (SGI, Financial) in one year is $44.62, suggesting a downside of 23.19% from the current price of $58.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Somnigroup International Inc (SGI) Summary page.
