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

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 on UGRO, but lowering our projections and price target (from $8 to $3) after the company regaining compliance with their financial filings after switching auditors at the end of May 2024.</li><li>While the re-audited changes are (in our opinion) minor, the simultaneous release of results for 2Q24 and 3Q24 show urban-gro is still in transition, even while management aggressively reduces costs and focuses on profitable projects.</li><li>As such, and given UGRO now trades near historic lows as investors lost patience with the lengthy accounting review and the expected approval of cannabis in Florida and Federal cannabis category shifts have not occurred, we believe it is appropriate for us to be less aggressive in the near term.</li></ul>

We are reiterating our Buy rating on UGRO, but lowering our projections and price target (from $8 to $3) after the company regaining compliance with their financial filings after switching auditors at the end of May 2024.While the re-audited changes are (in our opinion) minor, the simultaneous release of results for 2Q24 and 3Q24 show urban-gro is still in transition, even while management aggressively reduces costs and focuses on profitable projects.As such, and given UGRO now trades near historic lows as investors lost patience with the lengthy accounting review and the expected approval of cannabis in Florida and Federal cannabis category shifts have not occurred, we believe it is appropriate for us to be less aggressive in the near term.

UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

<ul><li>We are reiterating our Buy Rating, $8 price target and projections for urban-gro, as the company continues to register material progress, which we believe will become more obvious going forward.</li><li>Further, while we view the potential for Florida to legalize recreational cannabis as a key positive catalyst, we do not believe it will be the only potential upside driver for urban-gro, as the company has continued to make material progress on the commercial side of the business, leveraging their turnkey services to gain market share and deeper competitive advantages.</li><li>As such, and, we believe, with the company on track to become fully current in their financial filings, we reiterate our Buy rating and $8 price target for UGRO.</li></ul>

We are reiterating our Buy Rating, $8 price target and projections for urban-gro, as the company continues to register material progress, which we believe will become more obvious going forward.Further, while we view the potential for Florida to legalize recreational cannabis as a key positive catalyst, we do not believe it will be the only potential upside driver for urban-gro, as the company has continued to make material progress on the commercial side of the business, leveraging their turnkey services to gain market share and deeper competitive advantages.As such, and, we believe, with the company on track to become fully current in their financial filings, we reiterate our Buy rating and $8 price target for UGRO.

UGRO: Momentum Continues to Build; Reiterate Buy, $8 PT

<ul><li>We are reiterating our Buy rating, $8 price target and slightly tweaking our projections after urban-gro, as part of their engagement with a new accounting firm, announced a restatement of historic results, driven by deferred tax liabilities.</li><li>We note the restatement will have no material impact on historic Revenue, Adjusted EBITDA and cash flows.</li><li>That said, we now do not expect the company to announce 2Q24 results now before October.</li></ul>

We are reiterating our Buy rating, $8 price target and slightly tweaking our projections after urban-gro, as part of their engagement with a new accounting firm, announced a restatement of historic results, driven by deferred tax liabilities.We note the restatement will have no material impact on historic Revenue, Adjusted EBITDA and cash flows.That said, we now do not expect the company to announce 2Q24 results now before October.

UGRO: View 2Q Delay, Restatement as Immaterial; Setting up 3Q, Reiterate Buy

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)

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

UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

We are reiterating our Buy rating on UGRO, but lowering our projections and price target (from $8 to $3) after the company regaining compliance...

Small Cap Consumer Research

UGRO: Momentum Continues to Build; Reiterate Buy, $8 PT

We are reiterating our Buy Rating, $8 price target and projections for urban-gro, as the company continues to register material progress, which we...

Small Cap Consumer Research

UGRO: View 2Q Delay, Restatement as Immaterial; Setting up 3Q, Reiterate Buy

We are reiterating our Buy rating, $8 price target and slightly tweaking our projections after urban-gro, as part of their engagement with a new...

Small Cap Consumer Research

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