Sonos initiated with a Buy at Craig-Hallum

Craig-Hallum analyst Alex Fuhrman initiated coverage of Sonos with a Buy rating and $20 price target. Sonos has best-in-class products and a loyal following that is eager for new product launches, with the average Sonos household owning three products and rising, the analyst tells investors in a research note. Craig-Hallum believes Sonos is well positioned for profitable growth when demand improves, noting that the company’s app install penetration has been rising, activations have outpaced units sold by about 10 percentage points over the past three quarters, and Sonos has a robust pipeline of new products and categories to enter.