Last Updated: 15 Sep 2024
Executive Summary
Urban-Gro Inc. (UGRO) is a provider of engineering design services for indoor growing facilities. The company has a market capitalization of $17.64 million and trades on the NASDAQ exchange. UGRO's latest stock price is $1.43. The company has been facing challenges in recent quarters, with declining revenue and widening losses. However, analysts remain bullish on the stock, with a consensus price target of $4.75.
Company Overview
Urban-Gro Inc. was founded in 2009 and is headquartered in Lafayette, Colorado. The company provides engineering design services for indoor growing facilities, including design, installation, and maintenance. UGRO's clients include commercial cannabis growers, research institutions, and government agencies.
Fundamental Analysis
UGRO's financial performance has been mixed in recent quarters. The company's revenue declined by 7.3% year-over-year in the latest quarter, to $20.2 million. The company's net loss widened to $12.0 million, or $1.36 per share. UGRO's gross margin also declined, from 24.6% to 20.2%.
Despite the recent challenges, analysts remain bullish on UGRO. The company is a leader in the growing indoor growing market, and its services are in high demand. UGRO's backlog of orders has increased in recent quarters, and the company is expected to benefit from the legalization of cannabis in more states.
Technical Analysis
UGRO's stock price has been in a downtrend in recent months. The stock has broken below its 50-day and 200-day moving averages, and it is now trading at its lowest level since April 2020. However, the stock is showing signs of oversold, and it could be due for a bounce.
Short Term Outlook
UGRO's stock price is likely to remain volatile in the short term. The company is facing challenges in the near term, including declining revenue and widening losses. However, the stock could be due for a bounce, and it could be a good opportunity for investors to buy on the dip.
Long Term Outlook
UGRO's long-term outlook is bullish. The company is a leader in the growing indoor growing market, and its services are in high demand. UGRO's backlog of orders has increased in recent quarters, and the company is expected to benefit from the legalization of cannabis in more states.
Analyst Recommendations
Analysts are bullish on UGRO's stock. The consensus price target is $4.75, which represents a potential upside of over 200%. Three analysts have a buy rating on the stock, and none have a sell rating.
