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Barclays says investors should consider putting their money in Scotts Miracle-Gro , a pandemic-era beneficiary positioned to generate solid free cash flows ahead. “We expect SMG to deliver c$6-$8 FCF/share in the next three years from strong underlying US Consumer business and working capital adjustment,” analyst Gaurav Jain wrote in his upgrade of the stock to an overweight rating. “This will help it to de-lever from the current high leverage and help guide upside.” Among Barclays’ reasons for liking the stock, Jain outlined the belief that U.S. consumer margins should stabilize in 2023 and noted that the gardening business, in recent history, has fared well during times of economic turmoil. Monetization of the company’s cannabis business — to which Barclays attributes zero value — could also provide further upside for the stock, he said. Barclays’ unchanged $75 price target implies a 45% upside for the stock from Monday’s close. The stock is down about 68% this year and surged 6% before the bell on Tuesday. — CNBC’s Michael Bloom contributed reporting
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