Somnigroup International Inc., formed from the TPX-Mattress Firm merger, is positioned as a leader in the mattress industry with $7.6B in 2024 pro forma revenue, dominating both manufacturing and retail. Trading at low multiples, the stock is expected to grow EPS at 18% annually with a stock price target of $121+.

CEO Scott Thompson is expected to drive $335M in total synergies for SGI, leveraging its retail scale and product lineup to outperform guided figures. With rising DTC mix and control over pricing, SGI offers a dominant platform at an inflection point operationally and industry-wide, with significant upside potential.

Despite not being among the 30 Most Popular Stocks Among Hedge Funds, SGI is held by 61 hedge fund portfolios. While the company shows promise as an investment, other AI stocks may offer greater upside potential and carry less downside risk. For those seeking an undervalued AI stock poised to benefit from tariffs and onshoring trends, a free report on the best short-term AI stock is available.

Read more at Yahoo Finance: Somnigroup International Inc. (SGI): A Bull Case Theory