Should I Buy SGI? SGI 2026 Analysis

Should You Buy Somnigroup International Inc (SGI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

90.120

1 Day change

0.41%

52 Week Range

96.720

Analysis Updated At

2026/01/26

Somnigroup International Inc (SGI) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, hedge fund buying activity, and growth potential from its acquisition strategy outweigh the short-term uncertainties in the mattress industry. While technical indicators are neutral, the long-term growth outlook and strategic moves make this a solid investment opportunity.

Technical Analysis

The MACD is positive and contracting, indicating a potential bullish trend. RSI is neutral at 47.842, showing no overbought or oversold conditions. Moving averages are bullish with SMA_5 > SMA_20 > SMA_200. Key support is at 91.772, and resistance is at 95.859. The stock is trading close to its pivot point of 93.815, suggesting limited immediate upside but a stable trend.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds are significantly increasing their positions in SGI, with a 1687.46% increase in buying activity last quarter.
Analysts from UBS and Goldman Sachs have raised price targets, with UBS maintaining a Buy rating.
The proposed acquisition of Leggett & Platt could drive long-term growth and synergies.
Strong YoY financial performance with revenue up 63.28% and net income up 36.46%.

Neutral/Negative Catalysts

Short-term caution from Goldman Sachs due to unclear evidence of sustained industry demand recovery.
Gross margin dropped slightly by -0.83% YoY.
Stock trend analysis suggests a 60% chance of minor declines in the short term (-0.84% next day, -6.37% next week).

Financial Performance

In Q3 2025, SGI reported a 63.28% YoY increase in revenue to $2.12 billion, a 36.46% YoY increase in net income to $177.4 million, and a 13.70% YoY increase in EPS to $0.83. However, gross margin slightly declined to 45.61%, down -0.83% YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

UBS raised its price target to $110 from $91 with a Buy rating, while Goldman Sachs raised its target to $92 from $83 with a Neutral rating. Analysts highlight SGI's strong growth potential driven by brand innovation, international expansion, and the Mattress Firm integration, but note short-term caution due to unclear demand recovery.

7 Analyst Rating

Wall Street analysts forecast SGI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SGI is 98.6 USD with a low forecast of 86 USD and a high forecast of 110 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

2 Hold

0 Sell

Moderate Buy

Current: 89.750

Low

Averages

98.6

High

110

Current: 89.750

Low

Averages

98.6

High

110

UBS

Buy

upgrade

$91 -> $110

AI Analysis

2025-11-07

Reason

UBS

Price Target

$91 -> $110

AI Analysis

2025-11-07

upgrade

Buy

Reason

UBS raised the firm's price target on Somnigroup to $110 from $91 and keeps a Buy rating on the shares.

Goldman Sachs

Neutral

maintain

$83 -> $92

2025-11-07

Reason

Goldman Sachs

Price Target

$83 -> $92

2025-11-07

maintain

Neutral

Reason

Goldman Sachs raised the firm's price target on Somnigroup to $92 from $83 and keeps a Neutral rating on the shares. As mattress demand begins to recover, Somnigroup is positioned for relative outperformance driven by brand innovation, the ongoing Mattress Firm integration, and solid international growth, the analyst tells investors in a research note. While the setup for growth and margin expansion appears strong, near-term caution remains warranted until there is clearer evidence of sustained industry demand recovery, Goldman says.

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SGI Should I Buy

SGI Should I Buy

Should You Buy Somnigroup International Inc (SGI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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