These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, Truist Securities analysts revised their rating on Scotts Miracle-Gro shares, listed on the New York Stock Exchange (NYSE:SMG), from Hold to Buy, while maintaining a price target of $70.00. The upgrade reflects a positive outlook on the company’s positioning in the current market environment. Trading at $54.77, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $70 to $100.
The analysts at Truist Securities expressed confidence in the lawn and garden sector’s recovery after the pandemic, noting that the US lawn and garden category appears to have stabilized. They believe that Scotts Miracle-Gro is poised to effectively manage the expected macroeconomic challenges that consumers may face over the coming year. The company’s robust revenue of $3.56 billion and impressive 21-year track record of maintaining dividend payments, currently yielding 4.82%, support this positive outlook.
Despite the anticipated macroeconomic turbulence, Truist Securities sees Scotts Miracle-Gro’s current stock valuation as highly attractive when compared to historical levels. The analysts have not made any changes to their estimates for the company’s financial performance. InvestingPro data reveals several additional bullish indicators, with 8 more exclusive ProTips available to subscribers, including insights on cash flow yield and growth prospects.
The endorsement from Truist Securities comes at a time when investors are looking for companies with the resilience to withstand various market pressures. The firm’s analysts underscored that Scotts Miracle-Gro’s position in the market and its valuation make it a compelling investment option.
The maintained price target of $70.00 suggests that Truist Securities believes there is potential for significant appreciation in the stock’s value from its current level. This upgrade is likely to draw attention from investors seeking opportunities in the consumer goods sector, particularly those focused on home and garden products.
In other recent news, Scotts Miracle-Gro reported its Q1 2024 earnings, surpassing expectations with a loss of $0.89 per share, compared to the forecasted loss of $1.24 per share. The company’s revenue also exceeded projections, reaching $417 million against an anticipated $392.29 million. The U.S. consumer segment showed robust growth, with sales increasing by 11% to $341 million, while the Hawthorne segment faced challenges with a 35% decline in sales. In another development, Stifel analysts upgraded Scotts Miracle-Gro shares from Hold to Buy, although they reduced the price target from $78.00 to $70.00. The analysts highlighted the company’s attractive dividend yield and noted that the current market valuation significantly undervalues its potential for strong near-term earnings recovery. Furthermore, Stifel’s analysts project a compound annual growth rate of 23% in earnings per share from fiscal year 2024 to 2027, suggesting confidence in the company’s long-term growth outlook despite current market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.