JPMorgan Downgrades to Neutral from Overweight on The Scotts Miracle-Gro Company (SMG)

The Scotts Miracle-Gro Company (NYSE:SMG) is one of the 11 Best Marijuana Stocks to Buy Right Now.

On March 26, 2026, JPMorgan reduced The Scotts Miracle-Gro Company (NYSE:SMG) to Neutral from Overweight, lowering its price objective to $67 from $70. The corporation noted rising input costs, predicting higher prices for urea, diesel, and high-density polyethylene due to the Iran conflict. JPMorgan said that these market conditions may cause raw material costs to rise in fiscal 2027 compared to 2026, raising uncertainty about earnings growth.

The Scotts Miracle-Gro Company (NYSE:SMG) released fiscal first-quarter 2026 results, with U.S. Consumer net sales of $328.5 million, a GAAP gross margin of 25.0%, and adjusted EBITDA of $3.0 million, up $2.1 million year on year. The corporation stated plans to divest its Hawthorne subsidiary and approved a $500 million share repurchase program beginning in late 2026. CEO Jim Hagedorn noted that the divestment will increase margins. CFO Mark Scheiwer stated that performance is consistent with fiscal 2026 guidance, which includes adjusted EPS ranging from $4.15 to $4.35.

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The Scotts Miracle-Gro Company (NYSE:SMG) manufactures, markets, and sells lawn and garden care products, as well as indoor and hydroponic growing solutions. The company’s products and services include lawn care, gardening and landscaping, hydroponic hardware and growing environments, lighting, controls, and marketing agreements.

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