SMPL - Simply Good Foods' Dual Story: Atkins Hurdles vs. Quest's Solid Momentum | Benzinga
Needham analyst Matt McGinley reiterated a Buy rating on the shares of The Simply Good Foods Company (NASDAQ: SMPL) with a price target of $42.
While the analyst expects strong topline growth in 4QF24 related primarily to inventory rebuild, Atkins sell-thru was soft in 2HFY23.
The analyst attributed the softness to three factors: Atkins bar sales were soft on distribution loss due to a lack of innovation, new Atkin's products failed to fill the gap left by bar distribution losses, and macro-related consumer trade-down and trade-up into larger pack sizes.
However, Quest’s health composition of 55% sales ...