Simply Good Foods upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Pamela Kaufman upgraded Simply Good Foods to Overweight from Equal Weight with a price target of $40, up from $37. The company’s “compelling” sales growth outlook and strong cash generation create an “attractive opportunity,” the analyst tells investors in a research note. The firm says Simply Good’s above-average growth profile is supported by attractive active nutrition category growth, Quest’s success, an opportunity for a recovery in Atkins, and gross margin expansion.