Somnigroup Inc (SGI) Rival Files for Bankruptcy. Something Good Coming?

Somnigroup International Inc (NYSE:SGI) is one of billionaire David Abrams’ top stock picks with upside potential. Somnigroup shares are up around 16% over the past month, and the Street sees the shares soaring at least 25% from the current level over the next 12 months. Some 63 hedge funds have confidence in Somnigroup stock.

Somnigroup Inc (SGI) Rival Files for Bankruptcy. Something Good Coming?

According to some Wall Street experts, Somnigroup International Inc (NYSE:SGI) stands to benefit from the bankruptcy of its competitor, Sleep Number Corporation. On June 12, Sleep Number filed for bankruptcy as its debt ballooned and losses mounted. The company blamed inflation, tariffs, and supply chain disruptions for its woes.

In Q1 2026, Sleep Number posted a net loss of $50 million on net sales of $319 million. Canadian bedding company Sleep Country Canada has offered to buy Sleep Number assets for $415 million.

Analysts at Piper Sandler saw the Sleep Number bankruptcy coming and said Somnigroup would benefit from it. In their June 4 note to investors, the analysts commented that the bankruptcy of the competitor would allow Somnigroup to gain market share in the premium mattress space. Additionally, the analysts speculated that Somnigroup could attempt to purchase stores and intellectual property assets in the rival’s bankruptcy process.

Somnigroup International Inc (NYSE:SGI) is a multinational bedding and sleep tech company. It makes and sells mattresses. Somnigroup manufactures mattresses under various product brands and operates a chain of retail stores to sell these products.

While we acknowledge the risk and potential of SGI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SGI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Seth Klarman Stock Portfolio: 10 Best Stocks to Top 10 Mid Cap Stocks to Own for Decades According to Hedge Funds.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1