SMPL - Simply Good Foods downgraded at Morgan Stanley after share price run brings valuation in line
Morgan Stanley moves to an Equal-weight rating on Simply Good Foods Company (SMPL) after having it slotted at Overweight. Analyst Pamela Kaufman points to the outperformance in share price over the last six months. "Our prior OW thesis held that the market underappreciated the company's LT growth profile, but now SMPL's EV/EBITDA multiple has expanded by 19% in the past 6 months," she notes. Kaufman and team think SMPL shares are appropriately pricing in a topline recovery following the pandemic, especially with consumers beginning to return to more active and mobile lifestyles.The firm assigns a price target of $33 to Simply Good Foods. Shares of Simply Good Foods are down 1.15% in premarket trading following the 30% run over the last six months.
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Simply Good Foods downgraded at Morgan Stanley after share price run brings valuation in line