Jefferies analyst Jonathan Matuszewski reiterated a Buy rating on Scotts Miracle-Gro Company (SMG – Research Report) today and set a price target of $69.00.
Jonathan Matuszewski has given his Buy rating due to a combination of factors that highlight the potential growth opportunities for Scotts Miracle-Gro Company. One of the primary reasons is the observed shift in consumer behavior from Do-It-For-Me (DIFM) to Do-It-Yourself (DIY) lawncare, driven by economic uncertainties and potential cost savings. This trend is supported by a noticeable decline in web traffic to major DIFM lawncare providers, suggesting a reduced interest in professional services and a potential increase in DIY solutions, where Scotts Miracle-Gro holds a significant market share.
Furthermore, Matuszewski points out that the company’s limited exposure to tariffs and its resilience during economic downturns position it well for future growth. With an expected EBITDA growth of over 12% in fiscal year 2025 and an attractive valuation, Scotts Miracle-Gro is seen as a defensive investment with strong potential for returns. The combination of these factors underpins the Buy rating, as the company is poised to benefit from current market dynamics and consumer trends.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 92 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.