Scotts Miracle-Gro: Buy Rating Backed by Strategic Moves and Projected Financial Growth

Jeffrey Zekauskas, an analyst from J.P. Morgan, maintained the Buy rating on Scotts Miracle-Gro Company (SMG – Research Report). The associated price target is $65.00.

Jeffrey Zekauskas has given his Buy rating due to a combination of factors influencing the Scotts Miracle-Gro Company. The company is expected to show improved financial performance, with projections indicating higher EBITDA in the June quarter of 2025 compared to the same period in 2024. This improvement is partly attributed to the shifting of volume from the challenging March quarter to the more favorable June quarter, alongside increased advertising and promotional efforts, which have bolstered sales growth.
Additionally, Zekauskas highlights the company’s strategic moves, such as the planned divestiture of the Hawthorne operations by the end of 2025, which is anticipated to enhance financial stability. Despite a reduction in the December 2025 price target from $80 to $65 due to broader economic risks, the company’s strong consumer franchise and recession-resistant market position are seen as key strengths. These factors, coupled with expectations of reduced financial leverage and potential outperformance in a challenging economic environment, underpin the Buy rating.

Zekauskas covers the Basic Materials sector, focusing on stocks such as Ecolab, International Flavors & Fragrances, and LyondellBasell. According to TipRanks, Zekauskas has an average return of 4.0% and a 55.11% success rate on recommended stocks.

In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $62.00 price target.