Morgan Stanley Delivers Sonos Risk/Reward Chart By

© Reuters.

By Sam Boughedda — Morgan Stanley reiterated an overweight note on the audio product developer and maker Sonos Inc. (NASDAQ:) Thursday, advising investors in a note that they see a buying opportunity.

Sonos shares are trading just below $25/share after falling 27% in the past three months. Morgan Stanley points out that this is “despite the fact that consensus EBITDA for FY22 has been revised upwards by 48% over the past 12 months.”

“The market appears to be pricing in a 15-20% reduction in FY22 adjusted EBITDA,” the investment bank added. They argued that the market also undervalues ​​the long-term sustainability of the company’s ecosystem.

Sonos has an “asymmetrically biased positive risk/reward” and is “a high-quality, long-term compound at a significant discount to fair value,” said analyst Erik Woodring.

Sonos shares were down nearly 3% on Thursday despite the rating, in line with the broader tech sector.

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