RBC Capital Markets analyst Jason Gere says Scotts Miracle-Gro still has a strong lawn and garden shopping season ahead of it, which could lift shares.
THE OPINION: Consumers may have delayed spending on lawn and garden products in March. But retailers are preparing for a busy April and May, he said, citing a survey of representatives from 50 Home Depot and Lowe's stores in the U.S. There will be a shift in spending from the March to June quarter, but not lower spending overall, Gere said in an analyst note Tuesday.
He's also confident that Scotts Miracle-Gro can keep its "dominant" market share, saying recent advertising efforts have been effective and it has lots of products on store shelves.
The analyst has a "Sector Perform" rating on Scotts Miracle-Gro Co.'s shares. He said a recent drop reflects worries about weak March sales, and the stock could recover if April and May prove strong.
THE STOCK: The company's stock took a nearly 10 percent dive from mid-March through Friday on weather concerns. Shares jumped 5 percent Monday, but on Tuesday afternoon dipped 38 cents, or less than 1 percent, to $44.85.