Maxim Group analyst Anthony Vendetti has maintained their bullish stance on UGRO stock, giving a Buy rating yesterday.
Anthony Vendetti has given his Buy rating due to a combination of factors, including urban-gro’s substantial backlog and management’s ability to control costs effectively. Even though urban-gro’s fourth quarter results for 2023 fell short of expectations and the guidance for 2024 revenue was significantly lower than anticipated, Vendetti recognized positive moves by the company. He noted the increase in backlog from the third to the fourth quarter and the company’s initiative to cut operating expenses.
Vendetti remains optimistic about urban-gro’s future, particularly regarding their diversification efforts, which saw commercial sectors accounting for a significant portion of recent revenue. Despite the challenges faced in the cannabis sector, he believes that urban-gro’s diversification and improved cost management will support the company’s objective of achieving positive adjusted EBITDA in 2024. Consequently, while his price target was adjusted downwards to $3.00, reflecting lower revenue expectations and ongoing challenges in the cannabis sector, Vendetti maintains a Buy rating on the stock.
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urban-gro (UGRO) Company Description:
Urban-gro Inc is an agricultural solutions and ag-tech company focused on serving commercial cultivators around the world. It offers various equipment and products such as Pesticides & Equipment, Climate Control equipment, Fertigation products, Wastewater Treatment equipment and others.
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