BGB Securities Reiterates Buy Rating, $50 PT for Scotts Miracle-Gro
In a report published earlier today, BGB Securities reiterated its Buy rating and $50.00 price target for Scotts Miracle-Gro Co. (NYSE: SMG).
BGB went on to say “After the market close on Tuesday, June 12th, SMG announced that they would miss the low-end of previous FY12 EPS guidance of $2.65-$2.85. Revised guidance has not been issued. We are cutting our FY12 EPS estimate from $2.90 to $2.29, and our FY13 EPS estimate from $3.50 to $3.00. We are maintaining our BUY rating on SMG shares, but we are cutting our price target from $60 to $50. Our $50 price target represents just under a 17x multiple of estimated FY13 EPS, which is approximately the multiple at which SMG shares have traded in recent years.”
Scotts Miracle-Gro Co. closed yesterday at $43.05.
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Tags: BGB Securities