JPMorgan downgrades Scotts Miracle-Gro stock rating on raw material costs

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Iran rejects U.S. war proposal, says no talks before conditions met Oil prices climb over 2% as Iran reviews US proposal to end war This is the hottest stock in the market because of its Claude exposure MU, WDC, SNDK fall: Why Google’s TurboQuant is rattling memory stocks (South Africa Philippines Nigeria) JPMorgan downgrades Scotts Miracle-Gro stock rating on raw material costs By Analyst Ratings Published 03/26/2026, 04:33 AM JPMorgan downgrades Scotts Miracle-Gro stock rating on raw material costs 0 SMG 1.24% Investing.com - JPMorgan downgraded Scotts Miracle-Gro (NYSE:SMG) to Neutral from Overweight and lowered its price target to $67.00 from $70.00. The stock currently trades at $67.67 with a market cap of $3.93 billion and a P/E ratio of 24.4. The firm expects Scotts to pay more for raw materials in fiscal 2027, which ends in September, than in fiscal 2026 due to consequences of the conflict in Iran. Urea prices averaged $422 per short ton over the past year and now stand at $660 per short ton. Diesel prices averaged $3.72 per gallon over the past year and currently trade at $5.37 per gallon. The company purchases about 30,000 tons of polyethylene, which averaged $843 per ton and now costs $1,280 per ton. JPMorgan estimates Scotts’ raw materials will be about $45 million to $50 million higher on average in fiscal 2027 than in fiscal 2026. The company buys approximately 150,000 tons of urea annually. The firm trimmed its fiscal 2027 earnings per share forecast for Scotts to $4.35 from $4.65, compared with its $4.25 estimate for fiscal 2026. Scotts reported $440 million in adjusted operating profit in fiscal 2025 and $3.4 billion in sales. According to InvestingPro analysis, the stock appears overvalued based on its Fair Value assessment. The company maintains a 3.9% dividend yield and has sustained dividend payments for 22 consecutive years, one of 8+ InvestingPro Tips available to subscribers. In other ...