Keefe Bruyette downgrades SmartRent on CEO change, guidance suspension

Keefe Bruyette downgraded SmartRent to Market Perform from Outperform with a price target of $2, down from $3.50. The firm continues to believe SmartRent is well positioned to be a leader in the growing smart apartment category, but says the unexpected CEO transition and guidance suspension on macro headwinds “calls into question the stability of the go-forward strategy and demand environment over the intermediate-term.” While the company’s hiring of a financial advisor suggests it is open to strategic options, Keefe does not expect investors to put much weight on this optionality over the near-term, the analyst tells investors in a research note.