First Berlin Equity Research on 27/06/2023 initiated coverage on urban-gro, Inc. (ISIN: US91704K2024/ Bloomberg: UGRO US). Analyst Ellis Acklin placed a BUY rating on the stock, with a USD 7.00 price target.

We start coverage of urban-gro (UG) with a Buy rating and $7 target price. The company is an integrated professional services and design-build firm offering solutions to the Controlled Environment Agriculture (CEA) and commercial sectors. The company has a wealth of experience including >1k CEA projects. We think UG’s growth prospects are excellent, given its focus on the still emerging cannabis and vertical farming (VF) industries. A pair of strategic acquisitions to broaden expertise and fulfil its turnkey vision, a full backlog, and ample liquidity has the company poised to grow its topline and restore profitability. We reckon investors are overlooking the positives emerging from the newly strengthened product offering and misunderstand urban-gro’s financing needs.