The Simply Goods Group (SMPL) PT Raised to $31 as Bernstein Reiterates Top Pick

Bernstein SocGen Group analyst Alexia Howard raised the price target on The Simply Goods Group (NASDAQ: SMPL) to $31.00 (from $29.00) while maintaining a Outperform rating.

The analyst commented: "We are publishing this Call to Action to reiterate SMPL as one of our top picks ahead of 1Q:26 results, based on the discrepancy between consensus’s sales growth estimates for next quarter and the positive trends we are seeing in the U.S. scanner sales data. Although Atkins (~a quarter of company sales) remains a drag, we see encouraging signs from Quest (~2/3 of company sales) and OWYN (~low double-digits % of company sales), as both brands have shown high-teens growth in the last 2 months. We see particular strength in Quest Salty Snacks (>20% of company sales) trends, which have re-accelerated in the last 12 weeks from high-teens % to +50.4% YoY

The company also has a heavy innovation pipeline planned for next year, and yet valuation has fallen from the low-teens in 1H:FY25 to now below 8x (vs its 5Y average of 15.0x and at a ~35% discount to the US Food sector). We reiterate SMPL as one of our top picks and see material upside heading into the next quarter (earnings release on January 8th)."

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