37.34
0.84%
+0.31
Why is Simply Good Foods Co (SMPL) Stock down?
20 Mar, 2024:
Simply Good Foods Co (SMPL) stock declined by 6.30% following an adjustment in outlook by Morgan Stanley. The firm reduced the stock's price target to $42 from the previous $46, while maintaining an Overweight rating. The adjustment was made due to potential top-line downside versus consensus, attributed to softer retail performance in the second fiscal quarter of 2024. Despite this adjustment, the company's long-term growth prospects are still considered attractive.
- Analyst's Perspective: Morgan Stanley's analysis suggests that Simply Good Foods Co is positioned as a compelling growth narrative within the packaged food industry. The firm's updated estimates underscore the company's potential, particularly with low expectations for the Atkins brand and anticipation of a re-rating upon signs of recovery. The company is strategically poised to benefit from robust growth in GLP-1 drugs, with management actively targeting this demographic in upcoming quarters.
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