Sonos: Jefferies starts coverage with 'neutral' rating
(CercleFinance.com) - Jefferies has started its coverage of the Sonos stock with a "neutral" rating and a target price of 23 dollars, after the wireless speaker maker made its market debut earlier this month on the NYSE.
Calling the company the "Lego of speakers," given its suite of modular, high-quality products, the broker believes the company has the opportunity to carry its strong brand onto other markets, such as portable, auto, and commercial.
However, Jefferies says it sees "no high growth revenue catalyst on the horizon" as Sonos has only managed to post a 9% three-year average growth rate over 2014-2017.
The broker also cites an "increasingly competitive landscape," with tech giants such as Amazon, Google and Apple all set to launch voice assistants and low priced speakers, which they will "subsidise" through other business lines.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Calling the company the "Lego of speakers," given its suite of modular, high-quality products, the broker believes the company has the opportunity to carry its strong brand onto other markets, such as portable, auto, and commercial.
However, Jefferies says it sees "no high growth revenue catalyst on the horizon" as Sonos has only managed to post a 9% three-year average growth rate over 2014-2017.
The broker also cites an "increasingly competitive landscape," with tech giants such as Amazon, Google and Apple all set to launch voice assistants and low priced speakers, which they will "subsidise" through other business lines.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.