Analyst Barry Oxford of Colliers Securities maintained a Hold rating on SmartRent (SMRT – Research Report), with a price target of $2.00.
Barry Oxford has given his Hold rating due to a combination of factors affecting SmartRent’s financial performance and strategic positioning. The company reported a significant decline in earnings, with a negative Adjusted EBITDA and a substantial net loss compared to the previous year. Despite a growth in SaaS revenue, overall quarterly revenue saw a sharp decrease, largely due to fewer units shipped and a strategic shift away from hardware sales.
Gross margins showed slight improvement, but the total gross profit decreased significantly. The company is taking steps to reorient its sales force and expects cost reduction measures to take effect in the future. On a positive note, SmartRent maintains a strong balance sheet with substantial cash reserves and no debt, which provides financial stability. However, the current financial challenges and strategic transitions justify a cautious Hold rating at this time.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $1.60 price target.
Questions or Comments about the article? Write to editor@tipranks.com