Sonos is set to rebound roughly 50% as it returns to growth, Rosenblatt Securities says.
Analyst Steve Frankel initiated coverage of the audio company with a buy rating and a $20 price target, saying he's expecting demand to pick back up for Sonos audio products.
SONO 1D mountain Sonos shares 1-day Sonos shares have sold off this year, plunging 20% while the S & P 500 has rallied 16% during the same period.
Regardless, the analyst's $20 price target implies shares will surge 54% from Tuesday's closing price of $12.95.
The analyst expects Sonos to continue to face challenges including tough comparisons up ahead but expects demand to improve as the company focuses on innovating new products.
Persons:
Steve Frankel, he's, Frankel, Sonos, Bose, Willing, Michael Bloom
Organizations:
Rosenblatt Securities