Simply Good Foods price target lowered to $14 from $39 at DA Davidson
DA Davidson analyst Brian Holland lowered the firm's price target on Simply Good Foods to $14 from $39 and keeps a Neutral rating on the shares. Simply Good Foods beat Q3 estimates on better-than-expected results across the Quest and OWYN brands, though its Q4 guidance was below consensus, reflecting a decision to under-ship relative to consumption, the analyst tells investors in a research note. While the company's healthy balance sheet, profitable brands, and exposure to the growing purposeful nutrition category provide reasons for optimism regarding its long-term prospects, Simply Good's modest Enterprise Value two EBITDA multiple of about 7-times FY26 estimate is warranted given a lack of visibility on a durable sales improvement, the firm added.
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DA Davidson analyst Brian Holland lowered the firm's price target on Simply Good Foods to $14 from $39 and keeps a Neutral rating on the shares.
Simply Good Foods beat Q3 estimates on better-than-expected results across the Quest and OWYN brands, though its Q4 guidance was below consensus, reflecting a decision to under-ship relative to consumption, the analyst tells investors in a research note.
While the company's healthy balance sheet, profitable brands, and exposure to the growing purposeful nutrition category provide reasons for optimism regarding its long-term prospects, Simply Good's modest Enterprise Value two EBITDA multiple of about 7-times FY26 estimate is warranted given a lack of visibility on a durable sales improvement, the firm added.