Sonos falls after Morgan Stanley cuts rating two notches to 'underweight'

Sonos

26/09/2024 12:30

** Shares of consumer electronics firm Sonos Inc  SONO.O 
fall 6.3% to $11.80 premarket 
    ** Morgan Stanley downgrades SONO two notches to
"underweight" from "overweight"; says they are the only
underweight on the Street
    ** Cuts target price to $11 from $25
    ** Says, financial impact of co's app redesign to likely
linger longer than market expectations
    ** Sonos introduced its new app in early May 2024, which got
significant backlash from users
    ** New high-frequency datasets we track show Sonos' net
promoter scores, brand favorability, and purchase considerations
are at or near 4-5 year lows - Morgan Stanley
    ** Brokerage adds co also facing headwinds from weak market
demand, an underperforming new product launch (Ace), and limited
near-term market expansion
    ** Three out of six brokerages rate the stock "buy" or
higher, two "hold", one "sell"; their median PT is $16
    ** As of last close, stock down 26.5% YTD
    

 (Reporting by Sukriti Gupta)
 ((Sukriti.Gupta@thomsonreuters.com;))