SKYX Platforms Corp.'s (SKYX:NASDAQ) smart products are coming to Home Depot due to a new collaboration between the two companies, reported Patrick McCann, research analyst at Noble Capital Markets, in a July 31 research note.
"The partnership with Home Depot is validation of the SKYX technology by a global industry leader," McCann wrote.
SKYX develops safe and smart technologies for homes and commercial buildings, including a weight-supporting ceiling receptacle, technology-enhanced light fixtures, and plug-and-play devices.
367% Upside in Undervalued Stock
Florida-based SKYX was trading at about US$1.07 per share at the time of the report, at a discount to peers, noted McCann. Noble's price target on the tech company is US$5 per share.
"Our price target reflects a multiple of roughly 3.4 times enterprise value to our 2025 revenue forecast, more in line with peers," the analyst wrote. "In our view, the shares offer a favorable risk-reward relationship."
The return implied in Noble's target is 367%.
SKYX remains rated as Outperform.
Significance of Collaboration
This is the first time SKYX's products will be available in a big box retailer's stores, McCann pointed out. They'll be sold on Home Depot's website as well.
The analyst wrote he expects the partnership to positively impact sales of SKYX's products for both residential and commercial purposes.
"The recent announcement should contribute to increased revenue momentum in the back half of the year," he added. "We believe it could also lead to additional partnerships with other large home improvement retailers."
Noble maintained its Q2/24 estimates of US$22 million (US$22M) in revenue and US$4M in adjusted EBITDA. SKYX is expected to report its Q2/24 results on or around August 9.
What To Watch For
Along with potentially increased sales and Q2/24 results, two additional future events stand out as likely catalysts of SKYX's stock, noted McCann.
One is receiving Mandatory Safety Standardization from the National Electrical Code as this could "enhance its revenue growth trajectory," the analyst wrote. The second is the company becoming cash flow positive.
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Disclosures for Noble Capital Partners, SKYX Platforms Corp., July 31, 2024
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IMPORTANT DISCLOSURES This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. ("Noble"). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst's judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report. The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.
Company Specific Disclosures The following disclosures relate to relationships between Noble and the company (the "Company") covered by the Noble Research Division and referred to in this research report. The Company in this report is a participant in the Company Sponsored Research Program ("CSRP"); Noble receives compensation from the Company for such participation. No part of the CSRP compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed by the analyst in this research report. Noble has provided capital markets advisory services in the last 12 months. Noble has received compensation for non-investment banking services in the past 12 months. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) within the next 3 months. Noble is not a market maker in the Company.
