Simply Good Foods price target lowered to $42 from $46 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Simply Good Foods to $42 from $46 and keeps an Overweight rating on the shares. The firm is reducing estimates ahead of Q2 results due on April 4, noting that retail takeaway within measured channels for Simply Good was flat in Q2, a deceleration from 6.0% in Q1 and below consensus estimates for 7.9% revenue growth in the quarter. Though the firm sees potential for sales downside compared to consensus driven by softer retail takeaway in Q2, it believes the shares are pricing in these near-term risks and the long-term growth outlook “remains attractive,” the analyst tells investors in a preview.