Tigress Financial reiterated its Buy rating on Scotts Miracle-Gro Co SMG, saying that strategic maneuvers by management over the past 12-18 months have positioned the company for considerable long-term economic profit growth.
Scotts Miracle-Gro, a maker of lawn and garden products, made key acquisitions and completed the Scotts LawnService JV with TruGreen. These steps would position the company to exploit significant growth opportunities resulting from trends in urban gardening, as well as marijuana legalization in the US.
"Furthermore, we believe the combination of growth plus shareholder friendly policies is a potent force and we expect shares to increase as a result," analyst Ivan Feinseth wrote in a note.
SMG acquired a 75 percent stake in Gavita, a provider of hydroponic lighting equipment, and more recently agreed to buy plant nutrient company Botanicare, which also focuses on hydroponic growing systems.
"The hydroponics segment of the market continues to be a high growth area in the market and we believe SMG will be able to garner significant share of this growth market," Feinseth highlighted.
In addition, the company's move to exit its European business would help to focus on the substantial domestic growth opportunities.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.