Truist downgrades Scotts Miracle-Gro with good news priced in

Truist downgraded Scotts Miracle-Gro to Hold from Buy with a price target of $75, up from $65. With the stock is now trading at 21-times its fiscal 2025 earnings estimates, the firm believes much of the near term good news is reflected in Scotts Miracle-Gro’s valuation. The analyst believes there is upside potential to fiscal 2025 estimates, but says a lot can change in any given year for the lawn and garden category due to commodity prices, weather and competition. It is “way too early to call where margins can go” in fiscal 2025, says Truist, which does not expect to have much visibility on that metric until the company provides 2025 guidance in November.