Simply Good Foods downgraded to Equal Weight from Overweight at Stephens

Stephens downgraded Simply Good Foods (SMPL) to Equal Weight from Overweight with a price target of $14, down from $24, following “rough” Q2 results and a significant guidance reduction. Consumption was soft across the portfolio with pressure coming from distribution losses, weaker core velocities, and underperforming innovation, says the analyst, whose talks with investors lead it to believe there is limited appetite for brand turnaround stories right now, particularly in the small cap food universe.