UBS has revised its price target for Scotts Miracle-Gro (SMG, Financial), reducing it from $77 to $55 while maintaining a Neutral rating on the stock. This adjustment comes as part of a broader analysis of the consumer staples sector ahead of the first-quarter earnings releases.
The decision reflects a challenging market environment, with UBS noting a decline in fundamental conditions. This is attributed to softened consumer demand and uncertainty surrounding tariffs. As a result, the firm cautions that navigating the upcoming earnings season for consumer staples may prove to be particularly complex.
Despite these challenges, UBS identifies several companies within the sector that it believes are well positioned. The firm highlights Coca-Cola (KO), Keurig Dr Pepper (KDP), Celsius (CELH), Monster Beverage (MNST), and Church & Dwight (CHD) as companies with high or improving fundamental visibility, which may provide them with an advantage in the current market context.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for The Scotts Miracle Gro Co (SMG, Financial) is $74.00 with a high estimate of $82.00 and a low estimate of $69.00. The average target implies an upside of 48.56% from the current price of $49.81. More detailed estimate data can be found on the The Scotts Miracle Gro Co (SMG) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, The Scotts Miracle Gro Co's (SMG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Scotts Miracle Gro Co (SMG, Financial) in one year is $65.21, suggesting a upside of 30.92% from the current price of $49.81. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Scotts Miracle Gro Co (SMG) Summary page.
