Urban-gro's Restructuring Efforts Show Promise Amid Q3 Setbacks

First Berlin Equity Research has issued an update on urban-gro, Inc., maintaining a "Buy" recommendation but reducing the target share price from USD 4.70 to USD 2.30. Analyst Ellis Acklin highlights recent contract wins with Brazilian restaurant chain Fogo de Chão, commissioning urban-gro to construct three new establishments. This signals positive momentum following a challenging 2024.

However, urban-gro's Q3/24 results revealed a 50% drop in revenue, necessitating adjustments in forecasts. The firm also faces delays in filing crucial SEC documents for 2024. Despite these hurdles, the recalibrated DCF model suggests substantial upside potential at $2.30 per share. While obstacles remain, the current transition phase may set the stage for a significant turnaround.