These Analysts Think SmartRent, Inc.'s (NYSE:SMRT) Sales Are Under Threat

The analysts covering SmartRent, Inc. (NYSE:SMRT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. The stock price has risen 9.6% to US$1.48 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

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After this downgrade, SmartRent's twin analysts are now forecasting revenues of US$162m in 2026. This would be an okay 6.9% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$180m of revenue in 2026. The consensus view seems to have become more pessimistic on SmartRent, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for SmartRent

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that SmartRent's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that SmartRent is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for SmartRent next year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of SmartRent going forwards.

Looking for more information? We have estimates for SmartRent from its twin analysts out until 2026, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.