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Smart Home Co. Introducing Innovative Electrical Technology
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Noble Capital Partners iniated coverage on SKYX Platforms Corp. on April 29. Read on to see why Noble gave SKYX and Outperform rating.

Noble Capital Markets analyst Patrick McCann initiated coverage on SKYX Platforms Corp. (SKYX:NASDAQ) with an Outperform rating and a price target of US$5.00, according to a research note published on April 29, 2024. The analyst believes that SKYX shares could offer investors significant upside due to the growth of the smart home technology industry and the prospect of one of the most impactful electrical safety developments in the last 40 years.

"SKYX Platforms is an innovative developer of smart home technologies that improve safety in residential and commercial buildings. The company holds over 30 patents with approximately 60 pending," McCann stated.

The analyst provided a favorable outlook for the company, estimating that revenue will grow roughly 60% from the prior year, reaching US$94.1 million in 2024. In 2025, revenue is expected to reach US$140.3 million, an increase of 49% over 2024. "The strong revenue growth is to be driven by the company's owned and operated lighting websites, as well as its key partnerships," McCann noted.

In September 2023, SKYX Platforms filed an application for mandatory safety standardization with the National Electrical Code (NEC) for its ceiling outlet receptacle. "If the application is approved, we believe the company would benefit from a very significant licensing opportunity over the long term," McCann commented. However, the analyst's revenue and adjusted EBITDA forecasts for 2024 and 2025 do not include the prospect of NEC mandatory safety standardization.

As of December 31, SKYX Platforms had US$16.8 million in cash and US$13.7 million in debt, primarily consisting of convertible notes with a 6% interest rate.

"We do not believe the company has any imminent need of additional capital, but it could seek funding to enhance its growth trajectory. Importantly, the company is expected to reach adj. EBITDA breakeven during 2025," McCann stated.

The analyst believes that SKYX Platforms' valuation offers upside potential, with the company's shares trading at 0.5 times enterprise value to the 2025 revenue forecast, well below peers.

"Our price target reflects a target multiple of roughly 3.4 times enterprise value to our 2025 revenue forecast, more in line with peers," McCann explained.

SKYX Platforms' strategic plans include the continued development and commercialization of its smart home technologies, focusing on improving safety in residential and commercial buildings. The company's management team, led by CEO Rani Kohen, has been instrumental in driving innovation and securing key partnerships to support growth.

With a strong patent portfolio, pending NEC approval, and a path to positive cash flow, the analyst believes SKYX Platforms is well-positioned to capitalize on the growing demand for smart home technologies. As the company continues to execute its growth strategy, investors may find significant upside potential in SKYX shares, as reflected in Noble Capital Markets' Outperform rating and US$5.00 price target.

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Important Disclosures:

  1. SKYX Platforms Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Noble Capital Markets, SKYX Platforms Corp., April 29, 2024

All statements or opinions contained herein that include the words "we", "us", or "our" are solely the responsibility of Noble Capital Markets, Inc. ("Noble") and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision. This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

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.

WARNING This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to by an investment advisor, that advisor may receive a benefit in respect of transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by . This report may not be reproduced, distributed or published for any purpose unless authorized by . RESEARCH ANALYST CERTIFICATION Independence Of View All views expressed in this report accurately reflect my personal views about the subject securities or issuers. Receipt of Compensation No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from "Buy" to "Outperform", from "Hold" to "Market Perform" and from "Sell" to "Underperform." The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

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