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

Reuters03-26
BUZZ-J.P. Morgan cuts <a href="https://laohu8.com/S/SMG">Scotts Miracle-Gro</a> 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

(Reporting by Kanishka Ajmera in Bengaluru)

((mail to: Kanishka.Ajmera@thomsonreuters.com))

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