Sonos

SONO · NASDAQ

$17.37+$0.44 (+2.60%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $16.93

SONO analyst rating

BuyConsensus of 3 analysts over the last 12 months. 67% rate it a buy.

Strong buy0
Buy2
Hold1
Underperform0
Sell0

12-month price target · 7 analysts

Average $19.65 (+13.1% upside)

Low: $15.65
Now: $17.37
High: $22.90

Upgrades and downgrades

The latest rating actions, newest first

SONO analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Rosenblatt	Jul 30, 2026	Maintains	Buy	$21.00	57%
Rosenblatt	Jun 15, 2026	Maintains	Buy	$21.00	57%
Rosenblatt	May 5, 2026	Maintains	Buy	$21.00	57%
Rosenblatt	Feb 4, 2026	Maintains	Buy	$21.00	57%
Rosenblatt	Feb 2, 2026	Maintains	Buy	$21.00	57%
Jefferies	Jan 5, 2026	Maintains	Buy	$19.00 → $21.00	60%
Rosenblatt	Nov 6, 2025	Maintains	Buy	$17.00 → $21.00	57%
Morgan Stanley	Nov 6, 2025	Upgrade	Underweight → Equal-Weight	$11.00 → $17.00	63%

The case for and against

Updated Oct 14, 2026

Bull case

Sonos is positioned for a constructive turnaround because it has repeatedly beaten conservative guidance, including March quarter revenue growth of 8.4% Y/Y, while management guided the June quarter to +6% at the midpoint and the third quarter to $355M-$375M in revenue. The investment case is strengthened by new product momentum such as Era 100 SL, Play, and Amp Multi, along with a 22% installer channel that carries higher-than-average margins and international expansion opportunities where 64% of revenue still comes from North America. Cost discipline and a repaired software experience under CEO Tom Conrad and CFO Saori Casey support the view that gross margins, EBITDA, and the ecosystem’s lifetime value can improve as Sonos scales its installed base.

Bear case

Sonos is facing a negative fundamental setup because rising DRAM costs are pressuring profitability, with a 200 bps gross margin hit in fiscal Q2 that widened to 400 bps in fiscal Q3 ending June, leaving Non-GAAP gross margin guidance at 44.0% to 46.0%. While first half gross margin dollars rose 7.9% and revenue increased 6.0%, the company’s margin profile remains vulnerable, with modeled gross margin stepping down to 43.0% in the fourth quarter and only modest operating leverage evident. Although management is mitigating supply risk and Non-GAAP operating expenses rose just 1% Y/Y, Adj EBITDA margins were only 0.6%, signaling that earnings power remains thin despite incremental growth.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.