Zinger Key Points
- The third quarter of 2023 could mark the end of the “pandemic hangover."
- Scotts Miracle-Gro company has more than a 60% market share in North America.
Despite gaining 40% year to date, shares of Scotts Miracle-Gro Co SMG are considered among the most oversold materials stocks.
The Marysville, Ohio-based company is poised to benefit from the improved visibility offered by the post-pandemic “reversion of the US Consumer segment” finally coming to an end, according to Truist Securities.
The Scotts Miracle-Gro Analyst: Bill Chappell upgraded the rating for Scotts Miracle-Gro from Hold to Buy, while raising the price target from $65 to $80.
The Scotts Miracle-Gro Thesis: Given that the company has more than a 60% market share in North America, weather does play a role in performance, Chappell said in the upgrade note.
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The analyst stated, however, that people returning to work after than pandemic exerted pressure on Scotts Miracle-Gro’s sales. The third quarter of 2023 could mark the end of the “pandemic hangover,” making this the right time to buy the stock, he added.
Chappell further said that 2024 could be “the best year ever” for the lawn and garden category.
SMG Price Action: Shares of Scotts Miracle-Gro had risen by 7.41% to $70.20 at the time of publishing Tuesday.
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