Commenting on the California court's ruling that Monsanto (MON) was liable for a $289M payment to a groundskeeper claiming his terminal cancer was a result of using Roundup weed killer, BofA/Merrill analyst Christopher Carey notes that while the product is owned by Monsanto, Scotts Miracle-Gro (SMG) is the exclusive distributor/marketer of consumer Roundup in the U.S./Canada, with the brand on track to be about 15% to FY18 profit, but less in FY19 as a 3-year term for $20M annual payments from Monsanto ends in FY18. Carey does not expect a ban of glyphosate, but argues that the court decision nevertheless adds a cloud over a product which is important for Scotts Miracle-Gro. The analyst reiterates an Underperform rating and $74 price target on Scotts Miracle-Gro shares.