Sonos Inc (SONO) shares are soaring in pre-market trading on Thursday, jumping 8.25% despite a recent price target cut. The smart speaker manufacturer's stock is showing significant strength ahead of the regular trading session, catching investors' attention.
The surge comes in the wake of Rosenblatt Securities' latest analysis of Sonos. While the firm lowered its price target for SONO from $18 to $15, it notably maintained its Buy rating on the stock. This mixed signal from analysts appears to have been interpreted positively by the market, with investors focusing on the retained bullish outlook rather than the reduced price expectation.
The market's enthusiastic response, despite the lowered price target, suggests that investors may be looking beyond short-term projections. Sonos' ability to maintain a Buy rating in the face of adjusted price expectations could indicate underlying strength in the company's business model or future prospects. As the trading day progresses, it will be interesting to see if this pre-market momentum carries through to regular trading hours.
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