J.P. Morgan cuts Scotts Miracle-Gro rating over rising material costs

Scotts Miracle-Gro

26/03/2026 14:56

** Shares of garden care chemical maker Scotts Miracle-Gro SMG.N fall 4% to $64.97

** J.P. Morgan downgrades stock to "neutral" from "overweight" rating, citing higher prices due to ongoing conflict in Iran

** Brokerage says co is likely to face higher raw material costs in FY2027 (year ending September) compared with FY2026, with prices of urea, diesel and high-density polyethylene (HDPE) all expected to rise

** "We think that raw material issues are likely to cause some earnings growth uncertainties," adds JPM

     ** The brokerage cut its price target to $67 from $70, implying about a 1% downside to the stock’s last close of $67.67

** Four of 7 brokerages rate the stock "buy" or higher, 3 "hold"; their median PT is $79 - data compiled by LSEG

** As of last day's close, stock is up ~16% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((mail to: Kanishka.Ajmera@thomsonreuters.com))