William Blair analyst Phillip Blee has maintained their bullish stance on SGI stock, giving a Buy rating yesterday.
Phillip Blee has given his Buy rating due to a combination of factors including Somnigroup International’s strategic supply agreements with Mattress Firm, Purple Innovations, and Leggett & Platt. These agreements are expected to significantly expand the product offerings available in Mattress Firm stores, with an emphasis on premium products, which could enhance sales and market presence.
Additionally, Somnigroup’s private-label manufacturing segment, Sherwood, will gain exclusive rights to assemble certain Purple products, potentially boosting production efficiency and margins by utilizing existing facilities more effectively. Furthermore, the equity warrants granted by Purple to Somnigroup present a long-term investment opportunity, as they offer potential upside given the current trading price of Purple’s stock. These strategic moves are anticipated to strengthen Somnigroup’s market position and financial performance, justifying the Buy rating.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $68.00 price target.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SGI in relation to earlier this year.