Sonos initiated with a Buy at Rosenblatt

Rosenblatt initiated coverage of Sonos with a Buy rating and $20 price target. The analyst says Sonos is a category leader in a market that should return to growth, driven by the ease and appeal of multi-room music along with the continued adoption of soundbars. While there are some near-term headwinds,it is “only a matter of time” before demand trends improve, setting the company up for the “double-barreled benefit” of revenue acceleration and margin expansion, the analyst tells investors in a research note.