UPDATE: BMO Capital Markets Downgrades Scotts Miracle-Gro

BMO Capital Markets downgrades Scotts Miracle-Gro

to Underperform from Perform on share valuation, as it reiterates the target price of $40 a share. BMO Capital Markets says, "We think the shares are richly valued ahead of guidance, which we don't believe will exceed consensus. SMG has clearly signaled that FY2012 is an investment year and has announced it will spend 30% more on advertising and lower trade promotion. It also noted that price increases will be modest and offset only half of the year's inflation, estimated in November at $80 million, although it could be lower now with the pullback in urea." SMG closed at $47.65 per share yesterday.