Sonos falls after Financial institution of America warns on gentle client electronics tendencies

Financial institution of America lowered its score Sonos (NASDAQ:SONO) from Purchase to Impartial on Tuesday. The agency pointed to continued softness in client electronics spending, the lengthy alternative cycle of residence audio merchandise, weak housing turnover, and Sonos’ (SONO) elevated stock and promotions.

Per the agency’s most up-to-date credit score and debit card information, client electronics and pastime spending was down 10% year-over-year in Sonos’ FQ4 and turned detrimental on a four-year foundation for the primary time because the starting of the pandemic.

“Our channel checks additional verify this slowdown—quite a lot of retailers we’ve spoken with have known as out softness in huge ticket client electronics,” warned analyst Jason Haas.

Whereas Sonos (SONO) continues to be seen as a number one innovator in wi-fi audio with long-term progress potential from current households, new households, and new merchandise/providers, BofA has issues that the extended business softness will weigh on demand. The agency assigned a worth goal of $12 to SONO.

Shares of Sonos (SONO) fell 3.27% in premarket motion to $10.93.

Sonos (SONO) is lined as much as report earnings on November 15.