Scotts Miracle-Gro Company (SMG – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst W. Andrew Carter from Stifel Nicolaus upgraded the rating on the stock to a Buy and gave it a $70.00 price target.
W. Andrew Carter has given his Buy rating due to a combination of factors including the recent undervaluation of Scotts Miracle-Gro Company’s stock, which has dropped significantly compared to its peers. Despite macroeconomic concerns, Carter believes that the company’s strong position in the U.S. Consumer business and its potential for robust earnings recovery make it an attractive investment.
The analyst acknowledges the risks associated with weather trends but considers the current stock valuation to offer a favorable risk/reward balance. Additionally, the company’s ability to manage tariff and labor risks, alongside its strategic investments in advertising and brand support, further bolster the positive outlook for Scotts Miracle-Gro’s long-term growth and profitability.