Scotts Miracle-Gro’s price cut
On January 4, Suntrust Robinson lowered its target price for Scotts Miracle-Gro (SMG) to $90 from $100. Scotts Miracle-Gro missed analysts’ estimates in three of the past four quarters. The stock declined almost 43% in 2018. While the company had been a promising bet for cannabis investors (MJ), the recent news weakened investors’ sentiment.
The overall consensus recommendation for Scotts Miracle-Gro’s target price in the first week of 2019 was $84.5, which was lower than last month’s consensus target price of $92.3. The target price was $102 at the beginning of 2018. As of January 4, the stock closed at $64.5, which would mean an upside of ~31% to the target price.
The overall recommendation from the seven analysts in the above chart was still a “buy.” One analyst recommended a “strong buy,” while three analysts recommended a “buy” on the stock for the next 12 months. Two analysts maintained a “hold” recommendation, while one analyst recommended a “sell” on the stock.
While there were some losses in the mainstream cannabis sector, stocks like Canopy Growth (WEED) (CGC), Cronos Group (CRON), and OrganiGram (OGRMF) ended in the positive territory in 2018.