Simply Good Foods price target lowered to $39 from $42 at DA Davidson

DA Davidson analyst Brian Holland lowered the firm’s price target on Simply Good Foods to $39 from $42 and keeps a Neutral rating. The firm is reducing its estimates into Q2 results next month amid disappointing consumption trends 2024, while softer scanner data through a seasonably significant period raises concerns about the prospects for management’s revitalization and acceleration plans as well as the potential GLP-1 is a headwind, the analyst tells investors in a research note. There is also a growing divergence between bars demand trending down and that of shakes trending up, the timing of which appears to jibe with increased GLP-1 adoption, the firm added.