Stifel maintains hold rating and $71 target on Scotts Miracle-Gro stock
Investing.com
Published Jun 10, 2025 10:13AM ET
On Tuesday, Stifel analysts reiterated their Hold rating for Scotts Miracle-Gro stock (NYSE: SMG) while maintaining a price target of $71.00, sitting within the broader analyst range of $54-$90. Currently trading at $65.55, the stock has shown strong momentum with a 13.45% gain over the past week. The decision comes as the analysts received feedback on their previous downgrade, which aligns with their concerns about the pace of updated fiscal year 2025 U.S. Consumer revenue growth.
The analysts expressed a cautious stance, highlighting potential risks to the quality of the company's fiscal year 2025 results. They also noted that their fiscal year 2026 estimates are significantly below the consensus, suggesting a neutral approach is currently warranted. According to InvestingPro , three analysts have recently revised their earnings estimates upward for the upcoming period, with net income expected to grow this year.
While the analysts acknowledged their enthusiasm for the U.S. Consumer Business's growth prospects, they emphasized the importance of remaining adaptable in response to market conditions. The analysts believe that the current risk and reward dynamics support maintaining a Hold rating.
The reiterated rating and price target reflect Stifel's cautious outlook on Scotts Miracle-Gro's financial performance in the coming years. Investors are advised to consider these factors when evaluating the stock's potential.
In other recent news, Scotts Miracle-Gro has reaffirmed its full fiscal year 2025 guidance, highlighting continued growth in consumer point-of-sale units and dollars during the key lawn and garden season. The company projects a significant reduction in interest expenses, expecting them to be roughly $30 million lower than the previous year. Additionally, Scotts Miracle-Gro anticipates a smaller increase in diluted share count than initially expected. Meanwhile, Truist Securities has raised the price target for Scotts Miracle-Gro to $75, maintaining a Buy rating, citing optimism following management's confirmation of guidance. On the other hand, Stifel analysts downgraded the stock from Buy to Hold, expressing concerns over U.S. consumer revenue guidance and potential inventory risks. Despite the downgrade, Stifel raised the price target to $71, reflecting the company's progress amid its recovery phase. UBS analysts maintained a Neutral rating with a price target of $54, noting the stock's strong performance after its second-quarter results. They emphasized the need for more clarity on margin expansion and earnings growth for fiscal year 2026. These developments reflect a mix of optimism and caution among analysts regarding Scotts Miracle-Gro's future performance.
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