We are reiterating our Buy rating, projections and $8 price target as we look forward to 2024 for urban-gro. While we believe the Controlled Environment Agricultural ("CEA") environment remaining challenging, there are signs, as key states slowly open up their markets and interest rate "sticker shock" eases, that more projects will come online. Further, urban-gro's shift to industrial, medical and education segments will remain a key driver for the company. We believe the non-CEA segment offers compelling economics, potential for repeat contracts, higher visibility and quicker completion times, which we believe will increasingly become evident going forward. We believe company management is fully focused on leveraging the current environment to drive top line growth and positive EBITDA, which would be a material positive milestone for UGRO investors. As such, we remain optimistic on the company's potential and reiterate our Buy rating and $8 price target.
04 Jan 2024
UGRO: 2024 Signposts: Time to Show the Model Works; Reiterate Buy & $8 PT
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UGRO: 2024 Signposts: Time to Show the Model Works; Reiterate Buy & $8 PT
- Published:
04 Jan 2024 -
Author:
Eric Beder -
Pages:
4
We are reiterating our Buy rating, projections and $8 price target as we look forward to 2024 for urban-gro. While we believe the Controlled Environment Agricultural ("CEA") environment remaining challenging, there are signs, as key states slowly open up their markets and interest rate "sticker shock" eases, that more projects will come online. Further, urban-gro's shift to industrial, medical and education segments will remain a key driver for the company. We believe the non-CEA segment offers compelling economics, potential for repeat contracts, higher visibility and quicker completion times, which we believe will increasingly become evident going forward. We believe company management is fully focused on leveraging the current environment to drive top line growth and positive EBITDA, which would be a material positive milestone for UGRO investors. As such, we remain optimistic on the company's potential and reiterate our Buy rating and $8 price target.