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