First Berlin Equity Research has published a research update on urban-gro, Inc. (ISIN: US91704K2024). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from USD 4.70 to USD 2.30.

Abstract
urban-gro has announced a handful of contract wins with Fogo de Ch?o. The restaurateur continues to expand its Brazilian dining chain and has once again hired urban-gro to construct three new steak houses. Newsflow has been markedly better so far this year after an ultra-challenging 2024, but the company is still in catch-up mode on its SEC filings (2024 10-K). Recently published Q3/24 results were particularly weak, showing a 50% topline contraction. Consequently, we have lowered FBe until the upside potential of revamped operations becomes clearly visible. Our recalibrated DCF points to fair value of $2.3 per share (old: $4.7) equal to 400% upside, and we believe a painful transition has paved the way for the long-awaited turnaround. Our rating remains Buy.