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 6.40 price target.
Newsflow from urban-gro has been encouraging this summer. The company inked several deals this month totalling $16m to top up its backlog, and it received a $2.3m cash injection from an investment sale. Political winds are also changing in the US. The Department of Health and Human Services (HHS) recommended that the DEA reschedule cannabis to a lower-risk Schedule III drug. Sector stocks and UGRO shares caught a bid on the news, and reclassification could be a significant catalyst for the cannabis sector. Plus, US senators unveiled a revamped marijuana banking bill last week, and a key vote is expected today. Meanwhile, the German federal parliament is due to vote on a bill recently passed by the Bundeskabinett to legalise weed for recreational use. A positive decision would be good news for UGRO’s nascent EU operations. We are Buy-rated on urban-gro with a $6.4 TP.