Sonos (SONO) - Get Sonos, Inc. Report shares rose on Thursday after Bank of America analysts upgraded the audio-products maker to buy from neutral while raising its price target to $18 from $17.50 per share.
Increased spending on at-home products and consumer electronics during the pandemic lockdown could produce results "towards the higher end or even above guidance," analyst John Babcock said, according to Bloomberg.
Sonos shares at last check rose 4.3% to $14.92.
A survey of analysts by FactSet pegs the Santa Barbara, Calif., company's fiscal-fourth-quarter earnings at a penny a share on revenue of $292.1 million.
Earlier this month Bloomberg reported that Apple (AAPL) - Get Apple Inc. (AAPL) Report had stopped selling headphones and wireless speakers from rivals including Sonos, Bose and Logitech (LOGI) - Get Logitech International S.A. Report as the tech giant was gearing up to launch its own new audio products.
In June, Sonos said it would cut 12% of its global workforce of 1,450 people.
In a Securities and Exchange Commission filing, the company also said it would close its New York retail store and six satellite offices. The moves come in reaction to the coronavirus pandemic, which has hammered many retailers.
“These actions are solely related to the company’s previously disclosed initiative to reduce operating expenses and preserve liquidity in the face of the pandemic," Sonos said.
The moves do not reflect "any material changes in the company's business since it reported second-quarter fiscal 2020 [ended March 28] results.”
Earlier this year Citron Research placed a $30 price target on the stock, saying that Sonos's strength in the stay-at-home environment was a big catalyst for the company.
“Sitting at the intersection of stay at home, streaming wars, and the connected home, Sonos has quickly emerged as the leader of sound in the connected home,” Citron said in a commentary.