Sonos: Rosenblatt Raises PT to $17, Maintains Buy Rating

Sonos: Rosenblatt Raises PT to $17, Maintains Buy Rating

Sonos, Inc. (NASDAQ: SONO) saw its price target elevated to $17 by Rosenblatt Securities, with the firm maintaining its "buy" rating. The upgrade comes amidst a mixed market sentiment and recent earnings reports. The stock has been gaining attention for its improving earnings estimates and a recent uptick in institutional investor holdings.

The financial services firm, Rosenblatt Securities, increased its price target on Sonos from $15.00 to $17.00, reflecting a growing optimism about the company's earnings prospects. This rating revision aligns with a broader trend of upward revisions in Sonos' earnings estimates, which has been gaining momentum in the market. Analysts have been increasingly optimistic about the company's future performance, particularly given its strong brand and expanding market presence.

Institutional investors have shown significant interest in Sonos, with several prominent funds raising their stakes in the company. The Public Sector Pension Investment Board, for instance, increased its holdings by 24.6% during the first quarter, owning approximately 0.32% of Sonos' stock worth $4,029,000. Other institutional investors such as Wells Fargo & Company MN, Bank of Montreal Can, Legal & General Group Plc, Raymond James Financial Inc., and Mariner LLC have also made notable investments in Sonos, reflecting a strong bullish sentiment among institutional investors.

Despite the positive analyst ratings and institutional investor interest, Sonos' stock has faced recent technical challenges. The 15-minute chart for Sonos triggered an RSI Overbought reading and a KDJ Death Cross, indicating potential technical weakness and a shift in momentum towards the downside. This combination of indicators suggests that the stock price has risen too quickly and may be due for a correction.

Sonos reported a quarterly loss of ($0.03) EPS, missing estimates, and its revenue for the quarter was $344.76 million, down 13.2% year-over-year. However, the company's fundamentals and analyst ratings provide a mixed picture, with several analysts raising their price targets and maintaining a "buy" rating despite the recent technical signals.

Investors should closely monitor Sonos' technical indicators and fundamental performance to make informed investment decisions. The recent technical signals suggest caution, but the company's fundamentals and analyst ratings provide a mixed picture. As always, it's essential for investors to conduct thorough due diligence and consider their risk tolerance when making investment choices.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-public-sector-pension-investment-board-raises-position-in-sonos-inc-sono-2025-08-18/
[2] https://www.investors.com/ibd-data-stories/stocks-to-watch-sonos-sees-relative-strength-rating-jump-to-82/
[3] https://www.ainvest.com/news/sonos-15min-chart-triggers-rsi-overbought-kdj-death-cross-alert-issued-2508/
[4] https://www.nasdaq.com/articles/earnings-estimates-rising-sonos-sono-will-it-gain