J.P. Morgan Increases EPS Forecast on Scotts Miracle-Gro (SMG)

J.P. Morgan updates its EPS forecast on Scotts Miracle-Gro (NYSE: SMG) after SMG issued its 10-K.

In a note to clients, J.P. Morgan writes, "The company's overall earnings expectation for F2011 of a range of 11%-13% EPS growth, or a range of $2.75-$2.85 per share with a midpoint of $2.80, compares favorably to the current Street Consensus estimate of $2.75. Given Scotts' advance raw material purchases of fertilizers, regional sales initiatives and manufacturing and distribution restructuring actions, we increased our F2011 EPS forecast from $3.80 to $3.85."

J.P. Morgan maintains its Overweight rating and $59 price target on SMG.

SMG is trading at $51.30.