Scotts Miracle-Gro price target lowered to $71 from $79 at Jefferies

Jefferies lowered the firm’s price target on Scotts Miracle-Gro (SMG) to $71 from $79 and keeps a Buy rating on the shares. With the company’s fiscal Q4 coming to a close next week, the firm reiterates its FY25 estimates and trims its FY26 forecasts, including trimming its gross margin forecast by about 60 points to 32.0%. With the new fiscal year beginning next week and no announcement regarding a final Hawthorne separation, the firm continues to model revenues from that segment and reflects it’s lower-margin profile dragging on FY26 results until a transaction is consummated, the analyst noted.