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By Sam Boughedda
Investing.com — Morgan Stanley reiterated an Overweight rating on audio products developer and manufacturer Sonos Inc (NASDAQ:SONO) Thursday, telling investors in a note that they see a buying opportunity.
Sonos shares are trading just below $25/share after a 27% fall in the last three months. Morgan Stanley points out this is, "despite the fact that consensus FY22 EBITDA has been revised 48% higher over the last 12 months."
"The market appears to be pricing in a 15-20% cut to FY22 Adj. EBITDA," added the investment bank. They argued that the market is also undervaluing the long-term durability of the company's ecosystem.
Sonos has an "asymmetrically skewed positive risk/reward", and is "a high quality, long-term compounder at a significant discount to fair value," analyst Erik Woodring argued.
Sonos shares are down nearly 3% Thursday despite the note, in line with the broader tech sector.