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

Abstract
urban-gro is back in the headlines with a contract win in the cannabis space valued at some $24m. The deal should cheer UG investors concerned about the lack of newsflow the past months and the deflating US election results for the cannabis industry in November. Plus, UG got bogged down in a lengthy re-audit of 2022 and 2023 financials last year in the wake of the Borgers accountancy scandal. We expect the company to file its Super 8-K in the coming days, which should contain only immaterial changes to historical reporting and give the company a clean slate for 2025. In our view, the latest win shows that UG has an attractive business capable of performing, when not heavily disrupted by external events. The contract win ranks as the largest in company history and confirms our view that UG-brass has the chops to get the business back on track. We remain Buy-rated on UG with a $4.7 target price.