Somnigroup International's (SGI) 2025 adjusted earnings guidance looks to be "achievable" as the outlook assumes an industry environment that is "flattish," Wedbush analysts said Friday, adding that they believe there's upside if demand were to improve.

Operating as Tempur Sealy International prior to its name and ticker change earlier this week, Somnigroup topped analysts' expectations with its fiscal Q4 earnings and revenue reported on Thursday. The company's fiscal 2025 earnings outlook of $2.60 to $3.00 also straddled the $2.87 consensus forecast.

Looking ahead, Somnigroup Chief Executive Scott Thompson said Thursday the company is targeting compound annual sales growth in the mid single digits from 2026 with EPS expected to rise to $4.85 by 2028.

"The company's long-term targets suggest strong earnings power predicated on only $100 million of synergies [from the Mattress Firm acquisition] and a rebound to normalized industry growth," the Wedbush analysts said, adding they see sales growth for Somnigroup and its peers soon rebounding to the low single-percentage digits and the company also benefiting from its position as a market leader.

They also believe post-acquisition synergies could eventually reach $250 million by fiscal 2028, or more than double current projections, lifting 2028 EPS to $5.38, which is $0.53 higher than the company's target.

Wedbush analysts Friday reiterated an outperform rating and an $80 price target for Somnigroup shares, which they said reflects a multiple of around 23 times their fiscal 2026 earnings forecast of $3.48 per share.

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