SmartRent downgraded to Neutral at Cantor Fitzgerald, remains a show-me story

Cantor Fitzgerald downgraded SmartRent to Neutral from Overweight with a price target of $2, down from $4. SmartRent reported disappointing Q2 results after preannouncing on July 31 along with a CEO transition, the analyst tells investors in a research note. SmartRent deployed 22.5k new units during the quarter, which was the lowest amount since the pandemic impacted 2Q20, gross margin declined sequentially, and management withdrew guidance for the remainder for the year, Cantor adds. The best way for new management to create value for shareholders is to emphasize SaaS revenue growth, but a lack of visibility going forward makes SmartRent a show-me story, Cantor argues.