Urban-gro, Inc. Gains Momentum with New Contracts

First Berlin Equity Research GmbH has issued a research update on urban-gro, Inc. (ISIN: US91704K2024). Analyst Ellis Acklin affirms his BUY recommendation and maintains a target price of USD 4.30.

Urban-gro (UG) recently secured a variety of contracts totaling approximately $12 million. While the total value is modest, the number of cannabis clients, over 12, stands out. The cannabis sector has been largely inactive since the pandemic, with investments stagnating. However, this trend may be reversing.

In May, the Department of Justice proposed reclassifying marijuana from Schedule 1 to Schedule 3, marking a significant policy shift. Additionally, recent polls indicate that Florida voters favor legalizing recreational use, potentially opening a vast market.

The new contracts represent UG's most significant quarterly activity in over two years. This development suggests potential for future deals in equipment and construction. The BUY rating for UG remains with a price target of $4.30.