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Citi lowered its price target on The Simply Goods Group (NASDAQ:SMPL) stock to $40.00 from $43.00 on Monday, while maintaining a Buy rating on the consumer goods company. According to InvestingPro data, the stock appears undervalued at its current price of $32.78, with analysts maintaining an overall Buy consensus rating of 1.83.
The research firm expects Simply Goods to report its fiscal third-quarter 2025 earnings on June 26. Citi projects the company will deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) in line with expectations of $267.24M, but anticipates a slight sales miss based on current consumption trends. InvestingPro reveals that 9 analysts have recently revised their earnings estimates downward for the upcoming period.
For the full fiscal year 2025, Citi believes Simply Goods may narrow its guidance to the lower half of its previously announced ranges, which currently stand at 8.5-10.5% for sales growth and 4-6% for EBITDA growth.
The firm also expressed concern that EBITDA estimates for fiscal year 2026 might be too high given inflationary pressures expected at the start of the year, combined with limited plans for price increases.
Despite these cautionary notes, Citi maintained its Buy rating, noting that with Simply Goods shares already down 16% year to date, much of the downside risk appears to be reflected in the current stock price.
In other recent news, Simply Good Foods reported financial results that surpassed consensus expectations, with revenue and EBITDA figures exceeding cautious estimates. This strong performance prompted Mizuho (NYSE:MFG) Securities to raise its price target for the company to $47, maintaining an Outperform rating. The firm credited favorable commodity timing and successful product placement for the positive results. Meanwhile, UBS initiated coverage of Simply Good Foods with a Neutral rating and a $41 price target, noting the company’s potential for consistent long-term growth due to its strategic positioning and market share gains.
DA Davidson, however, adjusted its price target down to $38, maintaining a Neutral rating, citing challenges such as cost inflation and tariff impacts as factors affecting the company’s performance. TD Cowen also maintained a Hold rating with a $36 price target, noting the company’s solid second-quarter organic growth and increased EBITDA, though it expressed concerns over ongoing distribution losses in the Atkins brand. In corporate developments, Simply Good Foods appointed Christopher J. Bealer as the new Chief Financial Officer, effective July 2025, and amended its Executive Severance Plan to adjust cash severance rates for certain executives.
These recent developments highlight the varied perspectives among analysts regarding Simply Good Foods’ growth potential and current market challenges. Investors are keeping a close eye on how the company navigates these dynamics and its strategic plans moving forward.
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