In a report released today, Robert Moskow from TD Cowen reiterated a Hold rating on Simply Good Foods, with a price target of $24.00.
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Robert Moskow has given his Hold rating due to a combination of factors affecting Simply Good Foods. The company’s recent fiscal year 2026 guidance fell short of expectations, leading to a significant drop in stock price. This was largely due to slower growth projections for their Quest and OWYN brands, which are crucial to the company’s overall performance. The unexpected quality issues with OWYN products have further compounded concerns, as negative consumer reviews have impacted sales and raised questions about the brand’s future in a competitive market.
In addition to these brand-specific challenges, the company’s overall sales growth forecast for FY26 is lackluster, with expectations ranging from a slight decline to minimal growth. The Quest brand, which accounts for a significant portion of sales, is anticipated to grow at a slower rate than previously expected, while Atkins is projected to see a notable decline. These factors, combined with the need for increased marketing investments to support brand recovery, contribute to the Hold rating as the company faces an extended path to returning to long-term growth.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $26.00 price target.