William Blair analyst Jon Andersen has reiterated their bullish stance on SMG stock, giving a Buy rating on January 15.
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Jon Andersen has given his Buy rating due to a combination of factors tied to Scotts Miracle-Gro’s recent performance and strategic moves. The company’s U.S. Consumer segment delivered revenue meaningfully above both his expectations and the broader market’s estimates, and earnings per share, while negative in this seasonally weak quarter, still materially outperformed forecasts. In addition, Scotts announced the divestiture of its Hawthorne business, a step Andersen views as sharpening the company’s focus on its core operations and improving profitability over time, alongside a newly authorized $500 million share repurchase program that signals confidence in the company’s valuation and balance sheet.
Andersen also emphasizes his conviction that Scotts holds a durable competitive advantage in the North American lawn and garden market, supported by its leading brands and strong execution capabilities. He believes these strengths create a defensible position and attractive long-term growth prospects. When combined with the current valuation—trading at roughly 10 times his 2026 EBITDA estimate—he sees an appealing risk-reward setup that justifies maintaining a positive stance on the stock.
Andersen covers the Consumer Defensive sector, focusing on stocks such as Vital Farms, J & J Snack Foods, and Primo Brands. According to TipRanks, Andersen has an average return of 1.4% and a 52.45% success rate on recommended stocks.
In another report released on January 15, TipRanks – Google also upgraded the stock to a Buy with a $70.00 price target.