SMG May Face Some Volume Weakness In FQ4 On High Retail Inventories

Analysts at JP Morgan reiterate their "neutral" rating on Scotts Miracle-Gro Co SMG, while raising their estimates for the company. The target price for SMG has been raised from $45 to $52. According to JP Morgan, “Scotts is improving its domestic market share position in both key lawn and garden product areas and in important regional geographies. Its product innovation is leading to increases in profitability from new product introductions.” “However, it may face some volume weakness in F4Q:10 due to high retail inventories. It may also be faced with some loss of Wal-Mart private label business in F2011,” the analysts add. JP Morgan has raised its proforma EPS estimates for FY10, FY11 and FY12 from $3.35 to $3.45, from $3.70 to $3.80 and from $4.00 to $4.20, respectively, to "reflect improved price realizations, the benefits of higher levels of capital expenditures, and improved regional market performances.” More Analyst Ratings here