Urban-Gro price target lowered to $3.25 from $6 at Craig-Hallum

Craig-Hallum analyst Eric Des Lauries lowered the firm’s price target on Urban-Gro to $3.25 from $6 and keeps a Buy rating on the shares. The firm notes that in Q4, delays in three projects caused a significant miss to revenues that reflect some of the quarterly visibility limitations inherent in the company’s business. Still, Craig-Hallum is “encouraged” that record backlog demonstrates continued momentum in the commercial business, by the the meaningful cost cuts undertaken and what that means for operating leverage going forward, especially with significant potential catalysts for the cannabis industry that could drive significant growth in equipment sales.