Shares of Scotts Miracle-Gro could be due for a strong rebound, according to Stifel. The firm upgraded the lawn and garden product stock to buy from hold, but lowered its price target to $78 per share from $70 in a Monday note. Stifel’s forecast still implies more than 25% upside from Monday’s close. Shares have pulled back more than 15% in 2025. However, analyst W. Andrew Carter thinks investors may have underestimated the company’s resiliency against macroeconomic pressures. SMG YTD mountain Scotts Miracle-Gro stock. “We believe the recent underperformance disproportionately overweight’s universal macroeconomic concerns despite SMG boasting key points of differentiation alongside adverse January/February with the latter a headwind, but in relatively inconsequential months,” Carter said. “We believe the shares dramatically undervalue the robust near-term earnings recovery and advantaged long-term growth profile stemming from the U.S. Consumer business’s unmatched position of strength.” The analyst also noted that, even with the stock under pressure — which he tied somewhat to adverse winter weather that hit revenue and the overall lawn and garden segment — the company still outperformed its peers. “Amid an improved but still imperfect 2024 season, SMG performed well, and we believe key customers’ caution around high-ticket discretionary should continue to bode well for the lawn and category leader,” Carter said. Analysts are split on Scotts Miracle-Gro. LSEG data shows that four have a buy or strong buy rating, while another six rate it as a hold.
