Colliers Securities analyst Barry Oxford maintained a Hold rating on SmartRent (SMRT – Research Report) today and set a price target of $2.00.
Barry Oxford’s rating is based on a combination of factors that reflect the current challenges and potential of SmartRent. The recent resignation of CEO Shane Paladin after a brief tenure has created uncertainty in leadership, prompting a conservative outlook on the company’s future performance. This leadership transition adds to the limited visibility regarding the company’s strategic direction and its ability to ramp up sales effectively.
Financially, the company reported a significant increase in net loss, partly due to a goodwill impairment, and a decrease in total revenue. While the SaaS segment showed some growth, other areas like hardware revenue saw declines as the company shifts focus. Gross margins have also decreased, reflecting changes in product mix and reliance on hardware sales. Despite these challenges, the company is taking steps to reorient its sales force and expects cost reduction measures to take effect later in the year, which could improve its financial position moving forward.
According to TipRanks, Oxford is a 3-star analyst with an average return of 1.3% and a 54.01% success rate. Oxford covers the Real Estate sector, focusing on stocks such as Centerspace, Postal Realty, and Gladstone Commercial.