SMPL - Simply Good Foods rallies after attracting another sell-side fan

Simply Good Foods ([[SMPL]] +1.8%) trades higher after Morgan Stanley launches coverage with an Overweight rating. Analyst Pamela Kaufman notes that SMPL shares are -24% YTD vs. Packaged Food -3% and the S&P 500 +2%, reflecting slowing trends in the convenient nutrition category during the pandemic."We expect SMPL shares to outperform over the next 12-months, driven by: 1) multiple long-term tailwinds supporting the convenient nutrition category, which has grown at an ~9% CAGR from 2006-19; 2) an acceleration in SMPL topline growth beyond the pandemic, starting in F2H21 and contributing to our outlook for ~9% revenue CAGR from FY21-23; 3) upside potential to revenue/cost synergies from the Quest acquisition; and 4) EV/EBITDA multiple expansion towards its average ~25% premium to food peers vs. 6% today." MS assigns a price target of $26 to Simply Good Foods to rep more than 20% upside potential for shares. Simply Good Foods is pretty

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Simply Good Foods rallies after attracting another sell-side fan