Scotts Miracle-Gro price target gets a boost at Truist Securities based on cannabis legislation possibilities in 2021

Scotts Miracle-Gro Co.’s
SMG,
+4.30%
price target was boosted to $250 from $180 at Truist Securities based on the cannabis legislation possibilities that could come from the incoming Democrat-controlled White House and Congress. “To be clear, we do not see national legalization on the horizon, but we do believe that improved banking laws and regulations will enable the legal cannabis growers to accelerate hydroponics purchases,” analysts said. Truist says this could be a positive for the Hawthorne portion of the business, which sells gardening items for commercial use as well as for hobbyists. Analysts are also upbeat about the coming lawn and gardening season, which should benefit from continued COVID-19-related restrictions, keeping consumers in their homes and tending to their gardens. “This gives us greater confidence that consumers who drove strong category growth in FY20, due to lockdowns/limited travel, will come back to the category during the peak March-June season of FY21,” the note said. “Additionally, our survey work indicates that a high majority of the new entrants to the category in FY20 enjoyed gardening and will continue to garden for the foreseeable future.” Truist rates Scotts Miracle-Gro stock a buy. Shares of the company are up nearly 4% in Thursday trading, and have skyrocketed 111% over the last year. The S&P 500 index
SPX,
+1.47%
has gained 17.3% for the period.

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