Scotts Miracle-Gro, a company specializing in lawn and garden products, is potentially poised for a significant comeback, as suggested by Stifel. Despite a recent decrease in share prices by more than 15% in 2025, Stifel upgraded the stock from hold to buy. Although the firm reduced the price target to $78 per share from $70, it still indicates a potential increase of over 25% from the previous closing price.
Analyst W. Andrew Carter believes that investors may have underestimated the company's ability to withstand macroeconomic challenges. Carter highlighted Scotts Miracle-Gro's unique strengths and resilience in the face of adverse market conditions. He emphasized the company's strong position in the U.S. Consumer business and its promising long-term growth prospects.
Analyst Andrew Carter's Insights
Analyst W. Andrew Carter believes that investors have underestimated Scotts Miracle-Gro's ability to withstand macroeconomic challenges. Carter points out that despite facing headwinds in the early months of the year, the company's strong positioning and differentiation should not be overlooked. He emphasizes the company's undervalued near-term earnings recovery and long-term growth prospects, especially in the U.S. consumer business segment.
While opinions among analysts are divided, with some issuing buy or strong buy ratings and others opting for a hold rating, the overall sentiment seems to underscore Scotts Miracle-Gro's potential for growth and recovery in the near future.
Stifel suggests that Scotts Miracle-Gro's stock may be poised for a significant comeback, as they upgrade the lawn and garden product company's rating to buy from hold. Despite lowering the price target to $78 per share from $70 in a recent note, the firm's forecast indicates a potential upside of over 25% from Monday's closing price.
Resilience and Performance
Scotts Miracle-Gro stock has experienced a decline of more than 15% in 2025. However, Carter highlights that the company has outperformed its competitors, even amidst challenges like adverse winter weather impacting revenue. He notes that customer caution regarding high-ticket discretionary spending could actually benefit the company as a leader in the lawn and garden category.
This perspective offers a fresh angle on the company's prospects, suggesting that it may have more robust fundamentals than previously thought. Carter's insights could prompt investors to reevaluate their assessment of the company and consider the long-term potential that it holds in the market.
Market Sentiment and Analyst Ratings
Market analysts are divided on the outlook for Scotts Miracle-Gro. According to LSEG data, four analysts have a buy or strong buy rating on the stock, while six others recommend holding the stock.
In conclusion, while Scotts Miracle-Gro has faced recent setbacks, analysts like Carter remain optimistic about the company's resilience and growth potential. Investors will be closely watching how the company navigates challenges and capitalizes on its strengths in the coming months.
Despite facing setbacks due to unfavorable winter weather impacting revenue, Scotts Miracle-Gro has outperformed its competitors, according to Carter. He noted that the company's performance during the challenging 2024 season was commendable, and he remains optimistic about its future outlook.
