Sleep Number Navigates A Challenging Consumer Market When Time Is Critical
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Michael Del Monte6.21K FollowersFollow5ShareSavePlay(11min)CommentsSummarySleep Number Corporation (SNBR) receives a Sell rating with a $5.64 price target, reflecting deep financial and operational challenges.SNBR is aggressively restructuring — cutting costs, reducing assets, and revamping management — to restore profitability amid a weak consumer environment.Elevated leverage (6.80x net debt/aEBITDA) and tightened credit covenants heighten risk, with profitability not expected until FY27.Despite a discounted 0.12x price/sales multiple, SNBR may be a value trap given debt risks and uncertain turnaround prospects. Tosh Persons/iStock via Getty Images Sleep Number Corporation (SNBR) is wading through a challenging consumer market as new management aims to aggressively cut costs while sparking growth in the coming fiscal year. With the goal of targeting a broader range of cost-conscious consumers, the firm isThis article was written byMichael Del Monte6.21K FollowersFollowMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You