(Recasts; adds details, share movement)

July 16 (Reuters) - BMO Capital Markets downgraded the U.S. personal care & household sector "outperform," to reflect soaring costs of commodities.

"The group's valuation is getting more attractive, but it may not be cheap enough yet given the future earnings adjustments that may be needed," the brokerage said, adding that the impact of the surging raw material costs would be more prolonged.

BMO also cut its rating on Procter & Gamble Co (PG.N: Quote, Profile, Research) to "market perform" from "outperform," saying though the company may be affected less than most household products companies, it will not fully escape the pressure.

It lowered its price target on the stock to $68 from $78.

The brokerage upgraded Scotts Miracle-Gro Co (SMG.N: Quote, Profile, Research), saying the company's stock price had fallen to a point where most of the bad news was in the stock.

Shares of Scotts Miracle-Gro were up more than 7 percent at $18.13 in morning trade on New York Stock Exchange, while those of Procter & Gamble were down 41 cents at $63.54. (Reporting by Swagata Gupta in Bangalore; Editing by Amitha Rajan) ((swagata.gupta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: swagata.gupta.thomsonreuters.com@reuters.net))