First Berlin Equity Research Ups Price Target for urban-gro, Inc.

First Berlin Equity Research GmbH has issued a research update for urban-gro, Inc., maintaining a "Buy" recommendation and raising the price target to $4.70 from $4.30. Recent developments within urban-gro have shown positive momentum, as the company secured multiple commercial construction contracts in September. In addition, the firm commenced October by winning contracts valued at approximately $12 million with over 15 cannabis clients.

urban-gro also obtained a $2 million loan from Grow Hill, LLC, addressing investor concerns regarding its modest liquidity of $0.7 million reported in Q1. The loan is intended to fulfill working capital requirements linked to the new cannabis engagements. The company's diversification into commercial sectors aims to stabilize its Controlled Environment Agriculture business.

First Berlin's updated model incorporates the fall in US treasury yields, contributing to the elevated price target. Analysts foresee substantial operational improvements in the second half of 2024, reinforcing the "Buy" rating.