UBS Revises Scotts Miracle-Gro (SMG) Outlook as Consumer Staples Pressures Persist

The Scotts Miracle-Gro Company (NYSE:SMG) is included among the 13 Best February Dividend Stocks to Buy.

On January 14, UBS nudged its price target on The Scotts Miracle-Gro Company (NYSE:SMG) up to $66 from $61 and left its rating at Neutral. The firm said the consumer staples space is still dealing with a tough backdrop, but there are signs that fundamentals could start to look better in 2026.

Scotts Miracle-Gro is best known for its lawn care products and, unlike many staple companies, it sells straight to individual consumers rather than large food or agricultural businesses. That position worked in its favor early in the pandemic, when demand for at-home projects surged. The period that followed has been more difficult. The company’s Hawthorne unit, which is tied to the cannabis market, has been a drag as the broader cannabis sector cooled off.

In response, management has been reshaping the business. A restructuring effort helped streamline operations and cut back lower-margin product lines, allowing the company to return to growth in 2024 with noticeably stronger margins. The U.S. consumer business ended the year with sales up 6%. In 2025, profits have continued to improve, even though overall sales have largely flattened.

The Scotts Miracle-Gro Company (NYSE:SMG) is still in the middle of that turnaround, but it remains the leading brand in at-home lawn care. That brand strength gives the company a solid foundation for longer-term growth.

While we acknowledge the potential of SMG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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