Truist Upgrades Scotts Miracle-Gro to Buy, Shares Gain 4%

Scotts Miracle-Gro (NYSE:SMG) shares rose around 4% intra-day today after Truist Securities upgraded the company from Hold to Buy, maintaining a $70 price target, as the firm sees the stock offering compelling value amid a stabilizing lawn and garden market.

Analysts believe that the U.S. lawn and garden industry has finally returned to pre-pandemic norms, eliminating the volatility that had clouded outlooks in recent years. With that reset in place, both the broader category and Scotts Miracle-Gro are now better equipped to weather upcoming macroeconomic headwinds, including potential pressure on consumer spending.

Importantly, Truist is not adjusting its financial estimates, but instead points to valuation as the driving factor behind the upgrade. The stock is currently trading at a discount compared to historical norms, making it an attractive entry point for investors seeking exposure to a more predictable consumer segment.