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Investing.com - Bernstein SocGen Group has lowered its price target on The Simply Goods Group (NASDAQ:SMPL) to $28.00 from $42.00 while maintaining an Outperform rating. According to InvestingPro data, SMPL currently trades at $20.63 and appears undervalued based on its proprietary Fair Value model.
The research firm cited ongoing challenges at the company’s Atkins brand and a temporary quality issue for OWYN as factors in the decision, though it noted SMPL is still delivering 3% organic sales growth. Despite these challenges, InvestingPro analysis shows the company maintains strong fundamentals with a "GREAT" financial health score and revenue of $1.46 billion in the last twelve months.
Bernstein SocGen characterized the recent stock drop of more than 20% as "overblown," noting that the company now trades at only 8.2x EV/EBITDA at the midpoint, which the firm considers "oversold" for a business aligned with consumer interest in high protein and low sugar products.
The firm lowered its forward EV/EBITDA multiple from 15.5x to 10.5x to reflect the ongoing Atkins challenges, while making a minor adjustment to its 12-24 month EBITDA estimate from $287 million to $286 million.
Despite the price target reduction, Bernstein SocGen maintained its Outperform rating, suggesting the current price represents a "good entry point" for investors.
In other recent news, Simply Good Foods Co. reported its fourth-quarter earnings for 2025, revealing a mixed financial performance. The company disclosed earnings per share (EPS) of $0.46, which fell short of the expected $0.48, resulting in a negative surprise of 4.17%. Despite this, Simply Good Foods slightly surpassed revenue forecasts. The market reacted to these results, leading to a significant pre-market stock decline. This development highlights the importance of meeting or exceeding earnings expectations for investor confidence. No analyst upgrades or downgrades were noted in the recent reports. Investors are closely monitoring these recent developments.
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