Truist upgrades Scotts Miracle-Gro with pandemic reversion ‘finally ended’

Truist analyst Bill Chappell upgraded Scotts Miracle-Gro to Buy from Hold with a price target of $80, up from $65. The analyst believes the post-pandemic reversion of the U.S. consumer segment has “finally ended.” The firm expects Scotts’ results to be more forecastable and manageable going forward. This improved visibility should enable the strengths of the business to become more apparent to investors, the analyst tells investors in a research note. In addition, with the focus of the company’s story “firmly back on” the lawn and garden category, the stock can return to its historical counter-seasonal trading pattern, says Truist. Meanwhile, it believes Scotts Miracle-Gro is “out of the woods” from a debt covenant standpoint, reducing the near term downside risk to the stock.