Happy Super Bowl Sunday to everyone on The Street. 

TIL a Laysan albatross in Hawaii is 74 years old, and its old age didn’t stop it from giving birth to another child this year, bringing her running total to more than 30.

That means the bird is as old as Texas Instruments (TI) — and currently bearing a lot more dividends.

Sonos Faces the Music

Sonos App Disaster Still Echoes

Sonos (SONO) has struggled to drown out the noise from last year's disastrous app update. As the Wall Street Journal (NWSA) points out, its Q1 results show sales and revenues continue to fall.

But the premium audio equipment company changed its tune in its recent earnings call, as new interim CEO Tom Conrad told investors about a significant reorganization.

Sonos slashed 200 jobs, or 12% of its workforce at the start of February — and Conrad said that this is just the beginning. Analysts are beginning to agree.

App-alling

It's hard to understate the impact of Sonos' 2024 bug-ridden update. It rendered many customers' top-end equipment unusable and Sonos took months to fix the glitches.

The company's slow apology only amplified the issue and many blamed structural issues for the botched rollout. The brand has yet to fully regain customer trust.

But Conrad could be the man for the job. The Silicon Valley veteran started out at Apple (AAPL) and has held senior positions at Quibi, Snapchat (SNAP), and Pandora (SIRI).

Sonos' Sour Note

Analysts remain cautious, but no longer overtly bearish. Of the 8 analyst ratings collated by MarketWatch, just one says to Sell. 4 have the stock at Hold, while 3 now believe Sonos is a Buy.

Rosenblatt Securities recently reiterated its Buy rating and price target of $18. That's more than 35% above this week's close.

Morgan Stanley (MS) is less convinced. Erik Woodring maintained his Sell rating due to "elevated uncertainty,” though the analyst upped its price target from $11 to $13.

Extensive cuts can be challenging to manage and investors will be listening for new sounds from Sonos. If the new leadership can make its own kind of music, perhaps customers — and investors — will start to sing along.

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IBM’s AI Pivot Could Fuel a Rally

Hiding in Plain Sight

Oppenheimer (OPY) sees a big upside for International Business Machines (IBM). The firm initiated the coverage of IBM with an Outperform rating and a $320 price target, implying an upside of roughly 22.5% from current levels.

Analyst Param Singh believes the market has yet to fully appreciate IBM’s shift toward software and AI-focused offerings. While the stock has already climbed 42% over the past 12 months, Singh argues that IBM remains undervalued due to lingering perceptions of it as a legacy IT hardware company.

Secret Sauce

As its software and consulting revenue grow, the analyst expects IBM to trade at a higher multiple, more in line with its software-driven peers.

IBM’s transformation is centered around expanding its software portfolio, particularly with Red Hat’s AI-driven solutions. Singh expects double-digit revenue growth in IBM’s software division, aided further by an uptick in consulting growth in the latter half of 2025.

The analyst asserts that IBM’s consulting arm is benefiting from increased demand for AI-driven application development and management, positioning IBM as a key player in enterprise AI adoption.

With AI integration accelerating across industries, Oppenheimer expects IBM's expertise in deploying generative AI solutions to further strengthen its market position.

Wall Street’s Warming Up

Oppenheimer isn’t alone in its bullish stance on IBM, but there’s no consensus on the stock. According to LSEG data, 10 of the 21 analysts covering IBM rate it a Buy, while another eight deem it a Hold.

As IBM continues its shift toward higher-margin software and AI offerings, analysts see room for further upside. If Singh’s thesis plays out, IBM could soon shed its hardware-heavy reputation and gain the valuation premium of a true AI and software powerhouse.

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Compass Is Pointing in the Right Direction

Line Goes North

UBS (UBS) took a positive position on Compass (COMP) ahead of its Q4 and full-year earnings report next week. It thinks the company has found its true north with recent acquisitions and the launch of a new homebuying platform.

Analyst Chris Kuntarich upgraded the real estate company to Buy from Neutral and increased its price target from $7 to $11. That implies nearly 40% upside

Kuntarich says the value from Compass' $444 million purchase of Christie's International Real Estate and @properties hasn't been fully priced in. He is also upbeat on Compass' organic growth potential.

All En-Compassing

Kuntarich highlighted the recent launch of Compass One, a client-facing portal that gives buyers and sellers easy access to all the information they need. This could streamline transactions and improve agent-client relationships.

Other factors that could send Compass' price off the map are potential changes to the National Association of Realtors' Clear Cooperation Policy and a boost in home sales. UBS foresees an uptick in existing home sales in the second half of 2025 and into 2026.

Golden Compass

UBS is not the only firm to believe Compass is headed in the right direction. Last week, Oppenheimer (OPY) increased its target to $9.50 from $8.50, maintaining its Outperform rating.

According to LSEG, 4 of 8 analysts rate COMP a Buy or Strong Buy. The remainder have it at a Hold.

That may change after the real estate giant announces its results on Tuesday. If Kuntarich is right and Compass can stay on course, investors may be able to build sizeable rewards into their portfolios.

Last Week’s Poll Results

Are you bullish or bearish on Dollar General (DG) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “The bottom is in.”

• 🐻 Bearish — “I can’t put my money in a store most people hate to shop at.”

Are you bullish or bearish on Royal Caribbean (RCL) over the next 12 months?

🟨🟨🟨🟨🟨⬜️ 🐂 Bullish

🟩🟩🟩🟩🟩🟩 🐻 Bearish

Are you bullish or bearish on Zillow (Z) over the next 12 months?

🟨🟨🟨🟨⬜️⬜️ 🐂 Bullish

🟩🟩🟩🟩🟩🟩 🐻 Bearish