Simply Good Foods price target lowered to $38 from $40 at Stifel

Stifel lowered the firm’s price target on Simply Good Foods (SMPL) to $38 from $40 and keeps a Buy rating on the shares. The firm is lowering its estimates ahead of Q3 results due on July 10 to reflect current consumption trends and factor in a higher risk of Atkins distribution losses in the fall shelf reset, the analyst tells investors in a preview. Recent Atkins measured channel trends indicate accelerating sales growth declines, driven by worsening distribution and base velocity trends, the analyst noted. However, shares now trade at a valuation that the firm believes undervalues the growth potential of the portfolio as the Quest and OWYN brands become more than two-thirds of revenue, the analyst added.