wells fargo analyst chris carey on thursday initiated coverage of four cannabis stocks with scotts miraclegro co drawing the most bullish comments in a sign of wall street’s growing interest in the sector wells fargo assigned an overweight rating to scotts miraclegro smg  the maker of fertilizer and owner of the hawthorne line of hydroponic equipment for growing cannabis he rated growgeneration corp grwg and hydrofarm holdings group inc hyfm as equal weight and canopy growth corp cgc weed an underweight carey set a price target of 180 a share for scotts miraclegro and said the stock is “flashing green” as a buying opportunity the stock has dropped 303 in 2021 compared with a rise of 223 by the sp 500 index spx “we see opportunity a stock well off its april highs a discount to peers and fundamental opportunity – leader in lawngarden and hydroponics – still ahead” carey wrote in a research note while recent volatility in the hydroponic volatility remains an “elephant in the room” the us west coast cannabis market is working through oversupply causing hydroponic market turbulence against already record yearago comps he said “strong operators can take advantage of market dislocations and we think smg can rerun its fy18 playbook to consolidate more share key driver of hydroponics growth” he wrote unlike its peers scotts miraclegro is also well established in the broader garden sector with a major presence at major retailers such as home depot inc and lowe’s cos inc low  he said  carey set a price target of 18 a share on growgeneration which he described as “the top hydroponic retailer in n america” with 2021 revenue growth greater than four times its level in 2019 it’s also valued at a discount to the fastgrowth retail sector growgeneration shares are down about 618 this year compared with a loss of 245 by the cannabis etf thcx    “the runway looks attractive with a strategy to increase store count 60 by end2023 internal initiatives ecommerce private label and continued momentum of us cannabis a key driver of hydroponic category demand” carey wrote meanwhile hydrofarm holdings a wholesaler distributor and manufacturer of hydroponic equipment and supplies in north america drew a price target of 33 a share as a “pure play” in the space carey said hydrofarm holdings shares are down 449 in 2021 “hyfm generates all revenue and profit in hydroponics one of few federally legal ways to play secular us cannabis growth that’s a longterm positive” he wrote “however during bouts of market volatility as is happening now on the us west coast this means hyfm is exposed “ carey said the stock “still looks overvalued” despite its roughly 59 slide this year “we think it’ll be tough to hit ‘breakeven’ revenue nearterm barring a change in us federal cannabis laws and are below consensus” he wrote