SKYX Platforms Corp. (SKYX:NASDAQ), a leader in smart platform technology, has announced the issuance of six additional patents in the U.S. and internationally, expanding its already robust patent portfolio to over 94 issued and pending patents globally. These new patents cover SKYX's advanced plug-and-play smart ceiling fan and heater, which offers both cooling for summer and heating for winter, further enhancing its smart home product lineup. This strategic addition not only reinforces SKYX's market position but also underscores its commitment to making homes smarter, safer, and more technologically advanced.
Rani Kohen, Founder and Executive Chairman of SKYX Platforms, expressed his satisfaction with these developments in a press release, stating, "We are proud to announce these additional six patent issuances, which further strengthen our globally robust intellectual property portfolio in the important areas of our advanced safe, smart homes, and sensor technologies."
This announcement aligns with SKYX's broader mission to revolutionize the smart home industry through innovation and technological advancement.
Building Smarter Homes
The smart home market has been experiencing rapid growth and significant transformation. According to Statista, revenue in the Smart Home market was projected to reach US$154.4 billion in 2024, reflecting substantial growth and the sector's expanding influence on modern living. The market was expected to show an annual growth rate (CAGR 2024-2028) of 10.67%, resulting in a projected market volume of US$231.6 billion by 2028.
This robust growth highlighted the dynamic and expanding nature of the smart home sector. Household penetration in the Smart Home market was anticipated to be 18.9% in 2024, with projections showing it would nearly double to 33.2% by 2028, indicating a significant adoption rate and growing consumer confidence in smart home technologies. The average revenue per installed Smart Home was expected to amount to US$365.60, showcasing the increasing value consumers placed on integrating smart technologies into their homes.
On April 26, Maxim Group also started coverage with a "Buy" rating and a US$3 price target, emphasizing SKYX's transition from traditional lighting to a high-growth smart home technology provider.
Grand View Research reported that the global smart home market size was valued at US$79.16 billion in 2022 and was expected to grow at a compound annual growth rate (CAGR) of 27.07% from 2023 to 2030. This rapid growth underscored the immense potential and increasing adoption of smart home technologies globally.
The integration of Artificial Intelligence (AI) in smart home products for smart features was expected to increase product demand, transforming how consumers interacted with their homes and making everyday tasks more convenient and efficient. The high penetration rate of smartphones and the internet globally was driving the demand for connected smart home products, making it easier for consumers to manage their homes remotely and efficiently.
Mordor Intelligence projected that the global smart home market size would grow from US$121.59 billion in 2024 to US$633.20 billion by 2032, at a CAGR of 22.9% during the forecast period. This showcased the rapid expansion and increasing importance of smart home technologies in modern living. The smart home market was undergoing significant transformation due to the rising demand for innovative wireless solutions like security regulators, entertainment controls, and HVAC controllers. The growing trend of integrating Artificial Intelligence (AI) in smart home products was expected to increase product demand, making homes more efficient and user-friendly.
The Catalysts
The recent issuance of patents is a significant catalyst for SKYX, enhancing its intellectual property portfolio and market value. The company's Total Addressable Market (TAM) of over US$500 billion reflects the vast potential for growth in smart home technologies.
Noble Capital Markets initiated coverage with an "Outperform" rating and a US$5 price target, highlighting the company's significant growth prospects in a May 15 report.
With 36 issued patents specifically covering advanced plug-and-play and smart home platform technologies, SKYX is well-positioned to capitalize on this market.
A notable catalyst for SKYX is its strategic collaboration with Ruee Appliances, a leading Chinese lighting manufacturer. This partnership aims to expand SKYX's reach in the U.S., Chinese, and European markets, leveraging Ruee's manufacturing and financial capabilities to introduce operational efficiencies and improve gross margins. Additionally, SKYX's partnership with General Electric and its recent record annual sales of US$58.8 million further solidify its competitive edge and financial stability.
Financial analysts have recognized SKYX's potential, with Noble Capital Markets initiating coverage with an "Outperform" rating and a US$5 price target, highlighting the company's significant growth prospects in a May 15 report.
On April 26, Maxim Group also started coverage with a "Buy" rating and a US$3 price target, emphasizing SKYX's transition from traditional lighting to a high-growth smart home technology provider. These endorsements, coupled with SKYX's extensive patent portfolio and strategic partnerships, position the company for substantial market expansion and long-term success.
Expert Opinions on SKYX
In that same May 15 report from Noble Capital Markets, experts emphasized the potential of SKYX's strategic partnerships, stating, "The company's strategic partnerships with industry leaders should contribute to strong revenue growth and market penetration. Notable partnerships include a five-year licensing partnership with General Electric (GE), as well as partnerships with industry leading lighting companies, Kichler, Quoizel, and Golden Lighting."
Noble Capital Markets also discussed SKYX's growth potential, noting, "The recently announced partnerships will allow the company to broaden its revenue base to include various channels. Importantly, the various commercial partnerships that have been announced could accelerate revenue growth while also expanding margins."
Regarding the financial outlook, Noble reported, "Given the Q1 performance, which was in line with our expectations, as well the announced partnerships, we are reaffirming our forecast for the company for the remainder of the year. We continue to expect revenue to build throughout the year as the announced partnerships gain traction."
"We affirm our BUY rating and US$2 price target for SKYX, underscoring our confidence in the company's strategic direction and growth prospects despite current challenges," a Joseph Gunnar and Co. report noted.
The report also noted SKYX's innovative technology and industry recognition, saying, "SKYX Platforms is a developer of safe and smart technologies for homes and commercial buildings. With the introduction of its weight-supporting ceiling receptacle and technology-enhanced light fixtures and plug-and-play smart home devices, the company is aiming to revolutionize the lighting and smart home industries."
According to a report from Joseph Gunnar and Co. LLC on May 31, the innovative partnership between SKYX and Ruee Appliance was highlighted. They reported, "SKYX announced a new partnership with Chinese lighting supplier and manufacturer Ruee Appliance, which will provide critical manufacturing and distribution capabilities. This collaboration significantly enhances SKYX's retail and distribution capabilities across the U.S., China, and Europe."
Joseph Gunnar and Co. LLC also emphasized SKYX's intellectual property strength, stating, "Additionally, SKYX was awarded eight new patents for the SkyPlug product, further bolstering its IP portfolio. These patents reinforce SKYX's market position and commitment to innovation."
On future financial prospects, Joseph Gunnar and Co. LLC reported, "SKYX affirmed its expected positive cash flow by 2025, a significant financial milestone. This projection, coupled with strategic partnerships, indicates a strong potential for future growth."
Regarding valuation and growth potential, Gunnar's report stated, "Although SKYX's unique patented product platform has significant earnings growth potential, the company trades at a price/sales multiple of 0.6 based on our 2024 estimated sales of US$90MM. Given the platform's tactical advantages, growth drivers, and earnings leverage potential, we believe SKYX should command a higher price/sales multiple, translating into a US$2 price target."
Lastly, Joseph Gunnar and Co. LLC expressed confidence in the company, stating, "We affirm our BUY rating and US$2 price target for SKYX, underscoring our confidence in the company's strategic direction and growth prospects despite current challenges. The company's innovative approach and strategic partnerships are expected to drive substantial market expansion and long-term success."
Streetwise Ownership Overview*Ownership and Share Structure
According to Reuters, strategic investors comprise 41.16%. Director Dov Shiff is the insider with the most shares, 14.99%. Steven Sieglaub owns 3.21% and Thomas J. Ridge, governor and director, owns 1.02%
Reuters data as of July 1, 2024, shows that 78 institutions hold 11.67% of SKYX. The Top 3 institutional investors are BlackRock Institutional Trust Company N.A. at 3.26%, with 3.27 million shares, The Vangaurd Group Inc. at 2.68%, with 2.68 million, and Geod Capital Management LLC at 1.23%, with 1.23 million.
Retail investors own the remaining.
SKYX Platforms has 100.17M outstanding shares and 58.94 M free float traded shares, according to MarketWatch.
Over the past 52 weeks, the company traded between US$0.72 and US$2.74 per share.
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Important Disclosures:
- SKYX Platforms Corp. has a two-year consulting relationship with Street Smart, an affiliate of Streetwise Reports, and pays US$84,000 per year in stock for such services.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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