Sonos Upgraded To Overweight From Equal Weight At Morgan Stanley
Morgan Stanley analyst Yuuji Anderson upgraded Sonos (SONO) to Overweight from Equal Weight, stating that he has become more confident that new products will drive growth and margin expansion.
He believes new product introductions over the next twelve months should meaningfully expand Sonos' categories and distribution opportunities, such as its deal with IKEA, while also believing that declines in older speaker products are being more than offset by the strong reception for the Beam.
However, Anderson lowered his price target on Sonos shares to $15 from $20 as he lowered his multiple following the re-rating of consumer electronics peers.
He also noted that the pending lock-up expiration on January 29 could result in more volatility in the stock.
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