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

Abstract
Recent newsflow from urban-gro has been encouraging. The company inked several commercial construction deals in September and kicked off October with a slew of contract wins totalling some $12m with over 15 cannabis clients. UG also secured a $2m loan with Grow Hill, LLC. This should cheer investors concerned about the low cash position (Q1: $0.7m). The loan will help cover working capital needs associated with the new cannabis work. urban-gro has done yeoman’s work diversifying into commercial sectors to offset volatility in the CEA (Controlled Environment Agriculture) business, but we reckon an uptick in the cannabis business remains the best path to improved growth and profitability. The latest announcements support our belief that we will see a material upturn in operations in H2/24. An updated DCF model factors in the decline in US treasury yields since our last update and points to a $4.7 TP (old: $4.3). We remain Buy-rated on urban-gro.