Simply Good Foods' Dual Story: Atkins Hurdles vs. Quest's Solid Momentum
Portfolio Pulse from Shivani Kumaresan
Needham analyst Matt McGinley reiterated a Buy rating on The Simply Good Foods Company (NASDAQ:SMPL) with a price target of $42. The analyst expects strong topline growth in 4QF24 due to inventory rebuild, despite soft Atkins sell-thru in 2HFY23. Quest’s health composition of 55% sales remains healthy and is expected to drive SMPL's 4-6% long-term topline growth. The analyst warned that if Atkins' volume remains negative, it risks the growth until these issues are remedied. SMPL's growth profile is considered attractive among its food manufacturing peers.
October 10, 2023 | 5:43 pm
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The Simply Good Foods Company (NASDAQ:SMPL) has been given a Buy rating by Needham analyst Matt McGinley, with a price target of $42. Despite soft Atkins sales, the company's growth is expected to be driven by Quest’s healthy sales composition.
The analyst's positive outlook on SMPL, despite the soft Atkins sales, is based on the strong performance of Quest’s sales. This is expected to drive the company's growth, making it an attractive investment. The Buy rating and the price target of $42 further reinforce this positive outlook.
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