First Berlin Equity Research has published a research update on urban-gro, Inc. (ISIN: US91704K2024). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from USD 4.70 to USD 4.30.

We are staying Buy-rated on UGRO, despite a substantial Q4 topline and EBITDA miss. The company was snake-bitten in Q4, when three commercial projects slated for YE completion pushed into 2024. Investors hit the bid on the shortfall, but we think the sharp stock recoil may prove to be an overreaction as soon as Q1 reporting. UGRO brass emphasised that the projects were not lost and were active in Q1, while also recommitting to achieve a black AEBITDA in 2024. The initial 2024 guide underpins the need to be conservative and restore credibility with investors. Meanwhile, potential legislative catalysts for American cannabis also remain in play. Our TP moves to $4.3 (old: $4.7) after recalibrating FBe on 2023 reporting.