Scotts Miracle-Gro Company (SMG – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Jonathan Matuszewski from Jefferies upgraded the rating on the stock to a Buy and gave it a $69.00 price target.
Jonathan Matuszewski’s rating is based on several compelling factors. Firstly, Scotts Miracle-Gro Company is well-positioned to benefit from a shift in consumer behavior from ‘do it for me’ (DIFM) to ‘do it yourself’ (DIY) lawn care, driven by rising service costs and tariffs. This shift is expected to bolster the company’s market share, given its strong presence in the DIY segment. Additionally, the company’s limited exposure to international sourcing and tariffs, with only about 5% of its cost of goods sold affected, provides a stable foundation for growth.
Furthermore, the company’s defensive business model makes it an attractive investment during economic uncertainties, as lawn and garden spending tends to remain resilient. The potential divestiture of its Hawthorne division, focused on cannabis, is also seen as a catalyst for future growth by allowing the company to focus more on its core lawn and garden business. Lastly, the valuation of Scotts Miracle-Gro is considered attractive, with the potential for significant upside compared to its peers. These factors collectively underpin Matuszewski’s Buy rating for the stock.
According to TipRanks, Matuszewski is a 3-star analyst with an average return of 1.7% and a 44.69% success rate. Matuszewski covers the Consumer Cyclical sector, focusing on stocks such as Best Buy Co, Canadian Tire, and Lowe’s.
In another report released on April 2, Truist Financial also upgraded the stock to a Buy with a $70.00 price target.