Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $8 price target, but lowering our 2024 projections after urban-gro reported disappointing 4Q23 (December) results, as the company had three material commercial contracts shift from late 4Q into 2024, obscuring what would have been a strong end to the year.</li><li>While the contracts are expected to be materially completed in 2024, management has decided to be highly conservative in their guidance and rebuild credibility going forward.</li><li>Given the current valuation, we believe investors are discounting the urban-gro business model and the potential for the company to register positive EBITDA. While we understand investor skepticism, we believe CEO Brad Nattrass and his team have aggressively cut costs and positioned urban-gro to surprise low Street expectations.</li></ul>

We are reiterating our Buy rating and $8 price target, but lowering our 2024 projections after urban-gro reported disappointing 4Q23 (December) results, as the company had three material commercial contracts shift from late 4Q into 2024, obscuring what would have been a strong end to the year.While the contracts are expected to be materially completed in 2024, management has decided to be highly conservative in their guidance and rebuild credibility going forward.Given the current valuation, we believe investors are discounting the urban-gro business model and the potential for the company to register positive EBITDA. While we understand investor skepticism, we believe CEO Brad Nattrass and his team have aggressively cut costs and positioned urban-gro to surprise low Street expectations.

UGRO: 4Q Review: Stuff Happens; Reiterate Buy & PT after Tough 4Q

<ul><li>We are reiterating our Buy rating, projections and $8 price target as we look forward to 2024 for urban-gro.</li><li>Further, urban-gro's shift to industrial, medical and education segments will remain a key driver for the company.</li><li>As such, we remain optimistic on the company's potential and reiterate our Buy rating and $8 price target.</li></ul>

We are reiterating our Buy rating, projections and $8 price target as we look forward to 2024 for urban-gro.Further, urban-gro's shift to industrial, medical and education segments will remain a key driver for the company.As such, we remain optimistic on the company's potential and reiterate our Buy rating and $8 price target.

UGRO: 2024 Signposts: Time to Show the Model Works; Reiterate Buy & $8 PT

<ul><li>We are reiterating our Buy rating, projections and $8 price target after meeting with urban-gro management at the MJBizCon show in Las Vegas.</li><li>As such, we remain excited over the potential for urban-gro to continue to materially grow and to begin registering positive EBITDA going forward.</li><li>As such, we reiterate our Buy rating and $8 price target for UGRO.</li></ul>

We are reiterating our Buy rating, projections and $8 price target after meeting with urban-gro management at the MJBizCon show in Las Vegas.As such, we remain excited over the potential for urban-gro to continue to materially grow and to begin registering positive EBITDA going forward.As such, we reiterate our Buy rating and $8 price target for UGRO.

UGRO: MJBiz Update: The Metamorphosis Continues; Reiterate Buy Rating & $8 PT

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

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<li><span style="font-size: var(--content-font-size);">WTR Sustainable Index: During the week ended July 7, 2023, the WTR Sustainable Index outperformed the broader market, rising 3.3% W/W versus the S&amp;P 500 Index (down 1.2%), the Russell 2000 Index (down 1.3%), and the Nasdaq Composite Index (down 0.9%).</span></li>
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<p>Advanced Transportation Solutions (75.2% of the index) contributed to the index’s outperformance, rising 4.7%, while Energy Technology (6.5% of the index) was up 0.4% and Industrial Climate and Ag Technology was down 0.8%.</p>
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<p>Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.3x versus 20.5x for the S&amp;P 500.</p>
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WTR Sustainable Index: During the week ended July 7, 2023, the WTR Sustainable Index outperformed the broader market, rising 3.3% W/W versus the S&amp;P 500 Index (down 1.2%), the Russell 2000 Index (down 1.3%), and the Nasdaq Composite Index (down 0.9%).







Advanced Transportation Solutions (75.2% of the index) contributed to the index’s outperformance, rising 4.7%, while Energy Technology (6.5% of the index) was up 0.4% and Industrial Climate and Ag Technology was down 0.8%.


Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.3x versus 20.5x for the S&amp;P 500.



Weekly Sustainable Investing Surveyor Week Ended July 7, 2023

<div><ul><li>WTR Sustainable Index: During the week ended April 14, 2023, the WTR Sustainable Index performed in line with the broader market, rising 1.0% W/W versus the S&amp;P 500 Index (up 0.8%), the Russell 2000 Index (up 1.5%), and the Nasdaq Composite Index (up 0.3%).</li><li>Energy Technology (8.0% of the index) drove the index performance, rising 4.7%, while Advanced Transportation Solutions (69.3% of the index) was up 0.1% and Industrial Climate and Ag Technology was up 2.7%.</li><li>Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 28.5x versus 18.9x for the S&amp;P 500.</li></ul></div>

WTR Sustainable Index: During the week ended April 14, 2023, the WTR Sustainable Index performed in line with the broader market, rising 1.0% W/W versus the S&amp;P 500 Index (up 0.8%), the Russell 2000 Index (up 1.5%), and the Nasdaq Composite Index (up 0.3%).Energy Technology (8.0% of the index) drove the index performance, rising 4.7%, while Advanced Transportation Solutions (69.3% of the index) was up 0.1% and Industrial Climate and Ag Technology was up 2.7%.Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 28.5x versus 18.9x for the S&amp;P 500.

Weekly Sustainable Investing Surveyor : Week Ended April 14, 2023

United States

urban-gro, Inc. operates as an agricultural technology systems integrator. The Company designs irrigation and water treatment systems, inventory monitoring, cultivation equipment, and pest management solutions for cannabis growing industry. urban-gro serves customers in the United States and Canada.

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Urban-Gro (UGRO US)

UGRO: 4Q Review: Stuff Happens; Reiterate Buy & PT after Tough 4Q

We are reiterating our Buy rating and $8 price target, but lowering our 2024 projections after urban-gro reported disappointing 4Q23 (December)...

Small Cap Consumer Research

UGRO: 2024 Signposts: Time to Show the Model Works; Reiterate Buy & $8 PT

We are reiterating our Buy rating, projections and $8 price target as we look forward to 2024 for urban-gro. Further, urban-gro's shift to...

Small Cap Consumer Research

UGRO: MJBiz Update: The Metamorphosis Continues; Reiterate Buy Rating & $8 PT

We are reiterating our Buy rating, projections and $8 price target after meeting with urban-gro management at the MJBizCon show in Las Vegas. As...

Small Cap Consumer Research

Weekly Sustainable Investing Surveyor Week Ended July 7, 2023

Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.3x versus 20.5x for the S&P 500.

Water Tower Research

Weekly Sustainable Investing Surveyor : Week Ended April 14, 2023

WTR Sustainable Index: During the week ended April 14, 2023, the WTR Sustainable Index performed in line with the broader market, rising 1.0% W/W...

Water Tower Research

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