SmartRent initiated with a Buy at BTIG

BTIG analyst Soham Bhonsle initiated coverage of SmartRent with a Buy rating and $4.50 price target. The company is the largest provider in the Enterprise IoT space with low single digit market share of total rental stock today and its current customer base owns roughly 7M rental units combined, which is 10x where current deployed units sit, and its pipeline of units offers a long runway for low-risk unit growth and higher ARPU potential as SmartRent cross-sells/up-sells its solutions into these customers, the analyst tells investors in a research note. The firm believes SmartRent will execute its strategy while managing costs more prudently going forward, likely enabling GAAP profitability starting in 2H24.