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On Friday, Truist Securities analysts increased the price target for Scotts Miracle-Gro stock (NYSE: SMG) to $75 from $70, while maintaining a Buy rating. The stock, currently trading at $65.01, has shown strong momentum with a 9.15% gain over the past week. The adjustment comes amid the peak lawn and garden season, with April and May being crucial months for consumer purchases. According to InvestingPro data, the company maintains a "GOOD" overall financial health score of 2.56 out of 4.
The analysts expressed optimism following management’s confirmation of guidance at a sell-side conference on Thursday. This reassurance comes after two years of fluctuating U.S. consumer sales, which saw a decline of 3% in 2023 and a rise of 6% in 2024. The stock’s performance had also lagged, with a 14% drop compared to a 13% gain in the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP). InvestingPro analysis reveals the company has maintained dividend payments for 21 consecutive years, currently offering a 4.06% yield.
Scotts Miracle-Gro’s consumer point-of-sale sales grew by 12% through the first half of the fiscal year, presenting a strong start. The company is expected to benefit from favorable weather comparisons in May and June.
Truist Securities highlighted the company’s limited exposure to tariffs and its focus on the U.S. market as positive factors. The firm noted that no price increases have been implemented this year. Moving forward, they are keen to see updates on Scotts Miracle-Gro’s long-term strategy, including advancements in e-commerce and a new digital platform set to launch this fall.
In other recent news, Scotts Miracle-Gro Company (NYSE:SMG) reported its second-quarter 2025 earnings, revealing a slight beat on earnings per share (EPS) but a miss on revenue expectations. The company posted an EPS of $3.98, surpassing the forecasted $3.94, while revenue fell short at $1.42 billion against the expected $1.5 billion. Despite this revenue miss, the company reaffirmed its full-year EBITDA guidance of $570 million to $590 million. Additionally, Scotts Miracle-Gro has maintained its fiscal year 2025 guidance, anticipating U.S. Consumer net sales growth in the low single digits and a non-GAAP adjusted gross margin around 30%. The company also projects a decrease in interest expense by approximately $30 million compared to the previous year. UBS analysts have maintained a Neutral rating on Scotts Miracle-Gro stock, keeping the price target at $54.00, with expectations for significant margin recovery in fiscal year 2026. The company’s robust performance in consumer point-of-sale units and dollars during the key lawn and garden season has been noted as a positive indicator for its financial commitments.
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