Stock Price & Analysis

Analysis and Insights

Based on the current data and analysis, here is a concise recommendation:

• Buy: SONO stock is oversold with an RSI of 29.9, indicating potential buying opportunities as selling pressure may be exhausting.
• Sell: Recent strategic shifts, such as halting the video streaming player development, raise concerns about future growth prospects.

SONO stock is predicted to reach $16 by end of 2025, driven by a $150 million stock repurchase program and positive analyst sentiment, with Craig-Hallum raising its target to $17. The stock is currently undervalued at $11.62, supported by buybacks and potential rebound from oversold conditions.

The S1 support level for SONO Stock is $10.62 ,The R1 resistant level for SONO Stock is $11.9.

As of the end of day on 2025-04-02, the price of SONO Stock was $10.33.

The target price for SONO Stock according to analyst rating is 14.50, with the highest price target at 18.00 and the lowest at 11.00. Analysts have a Hold rating on SONO Stock overall.

The market cap of SONO is $1.3B.

Analysis and Insights

To determine if Sonos Inc. (SONO) is overvalued, we analyze its valuation metrics, financial performance, and recent news.

Valuation Metrics:

• EV/EBITDA: 62.24, indicating a premium valuation.
• PS Ratio: 1.56, suggesting the stock is expensive relative to revenue.
• PB Ratio: 4.75, above industry averages, signaling potential overvaluation.

Financial Performance:

• Net Income: Inconsistent, with net losses in several quarters.
• Gross Margin: ~40%, decent but with negative net margins.
• ROE: Negative, reflecting poor profitability.

Stock Price and Technicals:

• Current Price: $11.62, near the lower end of its 52-week range.
• RSI: 29.9, oversold but not necessarily undervalued.
• Fibonacci Levels: Support at $11.26, resistance at $12.19.

Recent News Impact:

• Halted Video Project: Strategic shift affecting growth prospects and investor confidence.

Conclusion:

SONO appears overvalued due to high valuation metrics, inconsistent profitability, and strategic setbacks.

Sonos, Inc. designs, develops, manufactures and sells audio products and services. The Company has developed multi-room, wireless audio products. Its platform has a broad range of more than 130 streaming content providers, such as Apple Music, Spotify and Pandora. The Company outsources the manufacturing of its speakers and components to contract manufacturers, who produce its products based on its design specifications. Its product categories include speakers, portable speakers, home theater, sets, architectural, audio components and accessories. The Company's products include Arc, Beam (Gen 2), Ray, Era 100, Era 300, Roam, Move 2, Sub (Gen 3), Sub Mini, Five and Amp. Its partner products include Sonos Pro, Audi Partnership, Sonos Radio HD, Sonos Radio, Sonos Architectural by Sonance, IKEA module units and accessories. Its Move 2 product is a portable, battery-powered smart speaker that delivers spacious stereo sound, with water-resistant design for outdoor and indoor listening.

SONO stock is predicted to reach $15 by 2030, driven by its $150 million buyback program and potential strategic growth initiatives. The stock currently trades at $11.62 with neutral RSI of 39.85, indicating moderate growth potential.

SONO has a total of 1867 employees.