UPDATE: JP Morgan Raises PT to $47 on Scotts Miracle-Gro on Strategy Towards Margin Expansion

JP Morgan reiterated its Neutral rating on Scotts Miracle-Gro

and raised its price target from $46 to $47. JP Morgan noted, "SMG described how its F2012 results would influence its strategy in F2013. Scotts plans to increase prices in F2013 in an effort to restore margins. SMG increased its advertising budget by $30M in 2012, and plans to scale this investment back by about 50% in 2013. Its idea is to expand margins in F2013: raw material costs would appear to be about flat year-over-year based on current prices for urea, resins and diesel. Scotts intends to provide more details of its F2013 outlook and strategy at its Analyst Day scheduled for December 14 in New York City." Scotts Miracle-Gro closed at $41.95 on Friday.