Sonos (SONO, $13.26) shares get a rating upgrade from Raymond James; shares surge on Monday
Sonos shares are climbing Monday, following a rating upgrade from Raymond James analysts.
Shares of the wireless speaker maker were upgraded to strong buy from outperform by analysts at Raymond James. The analysts indicated that Sonos has a two-year revenue [compound annual growth rate] that is around twice its peers GoPro and Arlo, and is still trading at the same levels as them. They also pointed out that Sonos has improved EBITDA margin and generated positive cash flow as well.
Earlier this month, Sonos reported fiscal third-quarter revenue of $260 million, which was +25% higher than the year-ago period. The company's adjusted EBITDA came in at $7 million, compared to a loss of -$2 million in the same quarter last year.
Raymond James analyst Adam Tindle set a 12-month price target of $19 for Sonos stock – which represents over 40% upside.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SONO in upward trend: 10-day moving average crossed above 50-day moving average on September 22, 2026
The 10-day moving average for SONO crossed bullishly above the 50-day moving average on September 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 21, 2026. You may want to consider a long position or call options on SONO as a result. In 62 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
The Moving Average Convergence Divergence (MACD) for SONO just turned positive on September 16, 2026. Looking at past instances where SONO's MACD turned positive, the stock continued to rise in 28 of 42 cases over the following month. The odds of a continued upward trend are 67%.
SONO moved above its 50-day moving average on September 14, 2026 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for SONO moved above the 200-day moving average on September 17, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +6.29% 3-day Advance, the price is estimated to grow further. Considering data from situations where SONO advanced for three days, in 221 of 297 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Bearish Trend Analysis
The 10-day RSI Indicator for SONO moved out of overbought territory on September 29, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In 19 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 68%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 48 of 65 cases where SONO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 74%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SONO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
SONO broke above its upper Bollinger Band on September 24, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SONO entered a downward trend on September 18, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. SONO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 48 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.269) is normal, around the industry mean (5.935). P/E Ratio (39.933) is within average values for comparable stocks, (102.284). Projected Growth (PEG Ratio) (0.070) is also within normal values, averaging (4.647). Dividend Yield (0.000) settles around the average of (1.004) among similar stocks. P/S Ratio (1.279) is also within normal values, averaging (4.260).
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SONO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a manufacturer of wireless music systems
Industry ComputerPeripherals
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