Sonos Inc. (SONO) PT Raised to $47 at BofA Securities After Product Event

BofA Securities analyst John Babcock raised the price target on Sonos Inc. (NASDAQ: SONO) to $47.00 (from $45.00) after attending a virtual investor event, where management discussed opportunities to grow in its existing markets and expand into new ones. The 2024 guidance offered by the company implies stronger revenue growth and better operating leverage than the analyst had built into our model, causing the revisions. SONO has committed to launching at least two new products a year and, in conjunction with the Investor Event, just announced the new Sonos Roam which is a portable speaker that is priced affordably and looks well-positioned to expand SONO’s presence outside the home (recall, Move was SONO’s first foray outside the home, and was launched in September 2019). Roam weighs less than a pound, has a 10-hour battery life, is water-resistant, dust-proof and is designed to work seamlessly with SONO’s ecosystem.

The analyst reiterated the Buy rating, stating "the company appears positioned to have better operating leverage as it has become increasingly efficient with its sales & marketing efforts, customer acquisition costs have come down (a chart of household acquisition costs in the slides shows a decline from a bit above $200 in F2016 to less than $150 in F2020, with steady declines from F2017), and its efforts to drive operational excellence through the business have helped keep other costs under control."

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