Urban-gro, Inc Maintains Buy Rating from First Berlin Equity Research Amidst Cannabis Rescheduling News

First Berlin Equity Research has published a recent report on urban-gro, Inc (ISIN: US91704K2024), reiterating a BUY recommendation with a target price of $4.30. The company, specializing in cannabis cultivation technologies, has shown significant promise according to analyst Ellis Acklin. In their latest research, dated May 2, 2024, First Berlin highlighted urban-gro's solid performance in the first quarter which aligns with its annual targets, forecasting $84 million in sales and a break-even adjusted EBITDA.

The DEA's expected decision to reschedule cannabis as a Schedule 3 substance has fueled optimism in the cannabis market. This policy shift is likely to generate substantial tax savings for operators, potentially increasing sector-wide investments. Apparently overshadowing urban-gro's Q1 achievements, these developments are expected to have a favorable impact on the company, although the full legal implications may take months to crystallize.