Simply Good Foods price target lowered to $34 from $39 at DA Davidson

DA Davidson lowered the firm’s price target on Simply Good Foods to $34 from $39 and keeps a Neutral rating on the shares. The company’s Q3 results and the stock reaction affirms that growth names tend not to work when the top line isn’t cooperating, the analyst tells investors in a research note. Simply Good Foods boasts among the strongest EBITDA margin profiles in Food, providing ample fuel for earnings upside and optionality, but the firm is not yet convinced that the current pressures on revenue growth are merely cyclical, with Atkins Y/Y reported net sales declining for seven consecutive quarters, DA Davidson added.