The garden and law care products supplier was downgraded by SunTrust Robinson Humphrey analyst William Chappell to neutral from buy. Chappell noted the stock is already up 16% this year, but with the garden season ending in July, is not expected to move much higher.
Shares of the company opened down 3% to $33.54 on Monday. The company has traded between $16.12 and $39.06 in the past 12 months.
While it may not seem like there is much more room for the stock to grow, Jefferies & Co. analyst Douglas Lane upgraded his earnings estimates for 2010. He urged investors to buy shares ahead of the release of third-quarter financial results later this summer, which are expected to show growth from last year.
Last month, Scotts Miracle-Gro raised its full-year forecast to $2.35 to $2.45 per share from $2.10 to $2.30 a share. The company said that consumer purchases were up 17% from October to May compared to the previous year, and remained strong in early June.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.