B.Riley raises SmartRent stock price target on earnings beat
Investing.com reports that B.Riley upgraded its price target for SmartRent (NYSE:SMRT) to $2.25 from $1.75, maintaining a Buy rating. The company cited strong third-quarter earnings that surpassed market expectations. SmartRent generated $41.6 million in revenue, a 14.8% increase year-over-year and a 4.3% rise quarter-over-quarter.
Core revenue, excluding non-cash hub amortization, climbed 24% to $40.7 million. EBITDA reached $1.1 million, with a 2.5% margin, beating both market and internal forecasts. The stock is currently trading at $1.62, up 18% over the past week, though some analysts believe it may be overvalued at current levels. SmartRent's balance sheet remains robust, with more cash than debt and a current ratio of 3.8.
The positive EBITDA trend indicates progress, despite analysts' pessimism about profitability this year. Hardware sales drove growth, with shipments of equipment ahead of fourth-quarter installations. Deployments are expected to increase in the fourth quarter, with the company targeting 1 million installed units by the first half of 2027.
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