“Hey Google, should I buy Sonos Inc. SONO?”
Google Assistant can now answer questions through the Sonos One and Beam Speakers. And those people who don’t have Sonos speakers may buy one because of the new Google function, DA Davidson said Wednesday.
DA Davidson’s Tom Forte reiterated a Buy rating and $20 price target on Sonos.
Forte sees the announcement by Alphabet Inc. GOOG’s Google and Sonos as a catalyst for sales. The speakers are already compatible with Amazon.com Inc. AMZN’s Alexa and the interoperability with the smart features are appealing to consumers, Forte wrote in a note.
Sonos speakers are now able to link up with Google’s ability to deliver programming on demand through the speaker through streaming services, and link to smart home features that will allow it to control devices such as TVs, thermostats and lights.
Forte noted Sonos products haven’t been hit by tariffs in the ongoing U.S.-China trade war, and that if they're the company has opportunities to mitigate the risk, including room to raise prices, negotiate more favorable terms with Chinese manufacturers, and possibly eventually moving production out of China if necessary.
Shares of Sonos were down 1 percent Wednesday at $10.48.
Photo courtesy of Sonos.
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