Robert Moskow, an analyst from TD Cowen, reiterated the Hold rating on Simply Good Foods (SMPL – Research Report). The associated price target is $36.00.
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Robert Moskow has given his Hold rating due to a combination of factors impacting Simply Good Foods. The company showed positive growth in its second quarter, with organic growth surpassing expectations and benefiting from delayed higher cost inventory. However, despite this growth, the management’s reaffirmation of fiscal year 2025 guidance reflects challenges, such as anticipated headwinds from tariffs and distribution losses in the Atkins brand, which offset the strengths seen in other product lines like Quest and OWYN.
Moreover, while the Quest brand’s performance, particularly in salty snacks, has been strong with significant growth and successful trials in major retailers, the Atkins brand faces a less optimistic outlook. The company has experienced distribution losses and lowered expectations for Atkins, which is expected to continue declining. These mixed results, along with the potential impact of tariffs on costs, contribute to the decision to maintain a Hold rating, as the company navigates both opportunities and challenges in its product portfolio.
According to TipRanks, Moskow is a 4-star analyst with an average return of 1.9% and a 46.22% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Vital Farms, McCormick & Company, and Freshpet.
In another report released on March 24, Morgan Stanley also initiated coverage with a Hold rating on the stock with a $36.00 price target.