Megan Alexander, an analyst from Morgan Stanley, maintained the Hold rating on Simply Good Foods. The associated price target remains the same with $36.00.
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Megan Alexander’s rating is based on a combination of factors that suggest a cautious yet slightly optimistic outlook for Simply Good Foods. Despite the company’s solid third-quarter performance with a 14% year-over-year sales increase, some concerns remain. The modest reduction in FY26/FY27 estimates reflects an unfavorable cost outlook and declining trends in the Atkins brand, which are areas of concern for future growth.
Additionally, while the Quest and OWYN brands show positive momentum, the visibility for Atkins remains low, and distribution challenges persist. The stock’s valuation is relatively low compared to historical levels, which leans positively, but the need for improved clarity on Atkins’ stabilization and competitive pressures are significant considerations. Therefore, the Hold rating reflects a balanced view of potential risks and opportunities as the company navigates these challenges.
According to TipRanks, Alexander is a 3-star analyst with an average return of 4.2% and a 57.61% success rate. Alexander covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Vail Resorts, and Hasbro.
In another report released on July 1, UBS also maintained a Hold rating on the stock with a $36.00 price target.