Sonos Stock Keeps Pumping Up the Volume
Inflation has hit the audiophiles. Sonos (NASDAQ: SONO) boosted prices for its products earlier this week, and at least one analyst sees that as a good thing. Brent Thill at Jefferies put out a bullish note on Tuesday, framing the 6% to 13% pricing increase for Sonos' speaker systems and related audio gear into financial perspective.
Thill estimates that the increase averages 7.3% across the lineup. It's not a money grab on behalf of Sonos. Component and shipping costs are also moving higher, and this is a justifiable way to keep margins in check. With the updated pricing, Thill thinks the $1.86 billion consensus revenue forecast for the new fiscal year that kicks off in two weeks -- translating into 8.5% top-line growth -- is too conservative. Given the "beat and raise" knack that Sonos has feasted on lately, that was probably going to be the case even if it didn't come firing with a pricing gun this week.
Yes, even the Ikea table lamp in this setting is a Sonos wireless speaker. Image source: Sonos.
Source Fool.com
