Maxim Group analyst Anthony Vendetti maintained a Buy rating on urban-gro (UGRO – Research Report) yesterday and set a price target of $3.00.
Anthony Vendetti has given his Buy rating due to a combination of factors that suggest urban-gro is well-positioned for future growth. Despite recent financial restatements and lower-than-expected revenue in the third quarter of 2024, Vendetti notes that the company has addressed its internal control weaknesses, reducing the likelihood of similar issues in the future. The launch of a new processing and extraction division is seen as a strategic move to enhance urban-gro’s offerings in the cannabis sector, potentially capitalizing on industry catalysts like regulatory changes.
Furthermore, the signing of a significant design-build contract and other commercial agreements indicate a potential rebound in demand, which Vendetti views as a positive sign for the company’s diversification efforts. Urban-gro’s improved expense management is expected to extend its cash runway, supporting long-term profitability. The company’s valuation, based on a discounted cash flow analysis, suggests a price target of $3.00, reflecting a discount to peers due to volatility and lack of GAAP profitability, but still indicating potential upside given the current trading multiples.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UGRO in relation to earlier this year.