BRIEF

on Urban-gro, Inc (isin : US91704K2024)

First Berlin Equity Research Maintains Buy Rating for urban-gro, Inc Despite Q4 Challenges

First Berlin Equity Research has recently updated its assessment on urban-gro, Inc (ISIN: US91704K2024), with analyst Ellis Acklin reiterating a BUY rating but reducing the price target from USD 4.70 to USD 4.30. This adjustment follows a significant decline in revenue and EBITDA for Q4, attributed to the delay of three commercial projects into 2024. Despite the market's initial adverse reaction to this news, Acklin suggests that the sharp decrease in stock price might be seen as an overreaction when considering the company's upcoming Q1 performance.

The company's management has reassured that these projects are still ongoing and are expected to contribute positively from Q1 2024. Furthermore, urban-gro is committed to achieving a positive adjusted EBITDA (AEBITDA) within the same year. The revised guidance for 2024 indicates a shift towards a more conservative approach and an effort to rebuild credibility with investors. Additionally, potential legislative changes for the American cannabis industry could serve as future growth catalysts for urban-gro, Inc. Acklin's revised target price reflects an update following the 2023 reporting adjustments.

R. P.

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