Simply Good Foods price target lowered to $40 from $43 at Citi

Citi lowered the firm’s price target on Simply Good Foods (SMPL) to $40 from $43 and keeps a Buy rating on the shares ahead of the fiscal Q3 report. The firm models inline EBITDA but looks for a slight sales miss, as indicated by consumption trends. For fiscal 2025, Citi thinks Simply could narrow its guidance to the bottom halves of its ranges for sales growth and EBITDA growth. EBITDA estimates for fiscal 2026 “could be a bit high” when considering inflationary pressures to start out the year, the analyst tells investors in a research note. With the shares down 16% year-to-date, Citi says a lot of this seems to be priced in.