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.

urban-gro kicked off the New Year with a ~$20m design-build contract win. The US-based customer is a vertically integrated cannabis cultivation and retail dispensary operator with a multi-state presence. UGRO shares caught a sizeable bid on the news, underpinning our belief that investors still incorrectly view the company strictly as a cannabis-centric business. In our view, investors are failing to appreciate last year’s expansion into commercial sectors to offset volatility in the CEA (Controlled Environment Agriculture) business. While the new contract gives us confidence in 2024 FBe, we had anticipated that new deals in Q4 would help push revenue for the period towards $30m. These did not materialise, and we have dialled back our targets for the October-to-December quarter accordingly. Our 2024 forecasts are unchanged. We are Buy-rated on UGRO with a $4.7 TP.