Sonos Stock is Music to Analysts' Ears After Earnings

The equity received three price-target hikes this morning

Deputy Editor
Aug 12, 2021 at 11:17 AM
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Sonos Inc (NASDAQ:SONO) gapped to a three-month high right out of the gate this morning, following the audio electronics company's fiscal third-quarter earnings and revenue beat. The firm also lifted its full-year revenue outlook, with CEO Patrick Spence citing strong demand for its products, as well as several macro trends including increasing interest in home theater systems and the shift away from offices to more flexible work environments. 

Analysts are chiming in on the strong results. BofA Global Research lifted its price target to $48 from $44, while two other price-target hikes came from Morgan Stanley and Jefferies, to $51 and $43, respectively. The 12-month consensus price target of $45.29 is a 24.9% premium to current levels, while all four analysts in coverage consider SONO a "buy" or better.

The stock was last seen up 4.9% at $36.49, pacing for its biggest one-day jump since May. Plus, today's pop helped SONO clear the $36 level, which has acted as pressure since early June. Lower down, the 180-day moving average has emerged as a solid leg of support, with SONO now boasting an impressive 158.9% year-over-year lead. 

Options traders are coming out in droves from both sides of the aisle, with 34,000 calls and 15.000 puts across the tape so far, which is 14 times the intraday average. Most popular is the September 40-strike call, followed by the August 38 call, with positions being opened at the latter. 

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