StockBeat: Sonos Soars, Analyst Says It Hits All the Apple Notes

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© Reuters. © Reuters. – Sonos surged on Wednesday as one Wall Street analyst said the audio company could be next on the shopping list for big tech firms, with Apple (NASDAQ:) touted as a potential suitor.

With its push into connected home efforts, which needs improvement, Apple (NASDAQ:) would “materially” benefit from making a play for Sonos, said D.A. Davidson analyst Thomas Forte. Sonos (NASDAQ:) rose 5%.

The spotlight on smaller hardware makers rose to the fore less than a week ago, when Google (NASDAQ:) bought wearables company Fitbit in a $2.1 billion deal. Apple was also rumored to be circling but was not prepared to cut as big a check as Google did for the wearables company.

Sonos, however, hits all the right notes for Apple to take notice, boasting many similarities such as high product quality and design acumen. Sonos can also charge a premium given its superior brand status, according to Forte.

“Just as Fitbit fills a void for Google when it comes to healthcare-related data, acquiring Sonos could materially advance Apple’s connected home efforts (an area we believe it needs improvement and where its own product, the HomePod, was a disappointment),” he added.

But there could be one hitch to a potential Apple-Sonos deal – regulation.

The regulatory powers have grown wary of big tech’s growing influence and may not be eager to rubber-stamp a deal, Forte suggested.

Sonos is up 45% for the year so far.

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