Simply Goods Group price target lowered to $32 by Jefferies on transition year concerns

Investing.com - Jefferies has reduced its price target on The Simply Goods Group (NASDAQ:SMPL) to $32.00 from $36.00 while maintaining a Hold rating on the stock. The stock, currently trading near its 52-week low of $28.14, appears undervalued according to InvestingPro analysis, with shares down over 26% year-to-date.

The firm cited fiscal year 2026 as increasingly looking like a transition year for the company, prompting Jefferies to lower its F26 growth estimate to 2.6%, which is 50 basis points below the Street consensus. This comes despite the company’s robust recent performance, with revenue growth of 14.22% over the last twelve months.

Jefferies also adjusted its EBITDA forecast to flat year-over-year, positioning its outlook 200 basis points below market expectations, noting that while category demand remains healthy, the company faces headwinds.

The research firm specifically pointed to pressure on the Atkins brand and rising input costs as factors likely to weigh on the company’s performance in the first half of the fiscal year.

Despite expectations for improved performance in the second half, Jefferies sees limited room for multiple expansion, particularly as competitive concerns continue to build in the company’s market segments.

In other recent news, The Simply Goods Group reported third-quarter 2025 results that exceeded expectations, with organic sales growth of 3.8%, surpassing the consensus estimate of 2.25%. Despite this earnings beat, UBS maintained its Neutral rating and $36.00 price target, noting that the company adjusted its fiscal year 2025 outlook to the lower end of its previous guidance due to weaker consumer demand and ongoing economic challenges. Mizuho also adjusted its outlook, lowering the price target for Simply Goods to $43.00 from $47.00, while maintaining an Outperform rating, citing positive momentum for the Quest brand and stable Atkins sales. Bernstein echoed a positive sentiment with an Outperform rating and a $45.00 price target, highlighting the company’s better-than-expected results. Meanwhile, DA Davidson reiterated a Neutral rating with a $39.00 price target after meetings with the company’s management, emphasizing the CEO’s focus on innovation. These developments reflect a mixed outlook for Simply Goods, with some analysts remaining optimistic about certain brand performances, while others express caution due to broader economic factors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.