Craig-Hallum downgrades Sonos to Hold after ‘botched app rollout’

As previously reported, Craig-Hallum analyst Alex Fuhrman downgraded Sonos to Hold from Buy with a price target of $10, down from $25, after the company significantly lowered guidance following a poorly executed rollout of a new app. The magnitude of the impact on near-term results is substantial, with Q4 sales now estimated to be down about 20% year-over-year compared to Craig-Hallum’s prior expectation of a nearly 30% year-over-year increase in sales.