Positive Outlook on Scotts Miracle-Gro: Strategic Initiatives and Financial Strength Drive Buy Rating

Jefferies analyst Jonathan Matuszewski has maintained their bullish stance on SMG stock, giving a Buy rating on June 6.

Jonathan Matuszewski has given his Buy rating due to a combination of factors including Scotts Miracle-Gro Company’s strategic initiatives and financial outlook. Matuszewski highlights the company’s investment in research and development, which is expected to drive product innovation and support sales growth through pricing strategies. Despite concerns about pricing not being as significant a growth driver as before, he believes that efforts to encourage more frequent use of products among younger DIY homeowners could compensate for this.
Additionally, Matuszewski points out that the company’s sell-through remains strong despite shifts in consumer spending habits. He also notes the potential for Scotts Miracle-Gro to expand in the ‘do-it-for-me’ market through partnerships with small-to-medium landscapers. Furthermore, Matuszewski is optimistic about the company’s commitment to reducing net leverage and sees opportunities for gross margin expansion, supported by cost-saving measures and limited exposure to tariffs. These factors, along with a focus on digital channels and a move towards becoming a pure-play lawn and garden company, contribute to his positive outlook.

In another report released on June 6, Truist Financial also maintained a Buy rating on the stock with a $75.00 price target.

Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SMG in relation to earlier this year.