JP Morgan Recommends a Stock Levered to the Cannabis Industry Boom
JPMorgan…you are late.
Yesterday, JPMorgan recommended Scotts Miracle-Gro (SMG) to its clients and changed its rating to Buy from Hold because it believes Scotts’ recent hydroponics business acquisitions will pay off as legal marijuana use increases.
JPMorgan’s analyst said, “We view Scotts as a reasonably valued investment over a longer time frame as weather impacts have understated Scotts' sales growth and Scotts' investment in its faster growing hydroponics portfolio should provide further upside.”
Just More Than a Year Late
In April 2015, Technical420 highlighted Scotts Miracle Gro as an ancillary play on marijuana in this article.
Our recommendation came after one of Scotts’ subsidiary announced a deal to acquire Santa Rosa-based General Hydroponics, a leading international supplier of liquid nutrients used to grow food, flowers and indoor marijuana.
Scotts’ subsidiary also acquired its sister business Bio-Organic Options, which sells organic soils and other gardening supplies under the Vermicrop...
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