Analyst Actions: Scotts Miracle-Gro, Molson Coors Brewing

RAYMOND JAMES DOWNGRADES SCOTTS MIRACLE-GRO TO MARKET PERFORM FROM STRONG BUY

Raymond James analyst Sam Darkatsh says Scotts Miracle-Gro's (SMG) second quarter results were about as expected [following pre-release], and reduced fiscal year 2008 guidance isn't all that bad given decent PoS trends and the fact that $0.10 of change comes from temporarily lost sales and ancillary expenses from product recalls.

However, Darkatsh is now concerned incremental raw material inflation, and potential inability to offset even a sizable portion of it with price, will have a large negative impact on SMG's outlook for fiscal year 2009. He says the valuation no longer provides attractive risk/reward ratio given possible wait for meaningful EPS growth, despite high quality of SMG's business model.

He cuts $2.25 fiscal year 2008 [September] EPS estimate to $2.05, and $2.70 fiscal year 2009 to $2.15.

GOLDMAN RATES MOLSON COORS BREWING ON AMERICAS BUY LIST

Goldman Sachs analyst Judy Hong says Molson Coors Brewing (TAP) results were strong across the board, with impressive top-line growth, solid pricing and cost savings ahead of expectations. She expects solid volume and pricing performance to dispel concerns about competitive outlook, and momentum in Coors USA portfolio to continue despite improved volume trends for BUD.

Hong says she is encouraged by solid share performance for Molson Canada. She thinks commodity fears may be eased by TAP's ability to offset with savings. Moreover, she expects strong record for savings to improve confidence in TAP's ability to meet $500 million synergy target outlined for Miller Coors JV.

She puts estimates and target price under review.