The Santa Barbara, Calif., company is well positioned compared with its peers, which are trading at similar levels, the firm says.
"Consider, Sonos currently trades in the same Zip Code as niche product company GoPro (GPRO) - Get Report and unprofitable company Arlo (ARLO) - Get Report , yet Sonos has a two-year revenue [compound annual growth rate] that is essentially double these companies and has done so while improving Ebitda margin and generating positive cash flow," analyst Adam Tindle wrote.
The stock has traded 30% lower over the past 12 months. "We think this narrative changes as Sonos scales beyond its existing markets," Tindle said.
Sonos shares were up 13% to $13.50.