UPDATE: Mizuho Securities Starts The Simply Goods Group (SMPL) at Buy
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Mizuho Securities analyst John Baumgartner initiates coverage on The Simply Goods Group (NASDAQ: SMPL) with a Buy rating and a price target of $46.00.
The analyst comments "We initiate coverage of The Simply Good Foods Company (SMPL) with a Buy rating and $46 price target. SMPL is a U.S. healthy snacking leader with portfolio expansion potential across categories poised to benefit from high protein/low-carb/low sugar formulations. We model FY22E-FY25E compound annual growth rates (CAGRs) of +9% and +11% for net sales and adjusted EBITDA (vs. Street's +7% and +9%) and expect positive surprises vs. consensus from (1) healthy snacking sustaining +MSD/+HSD growth, post-COVID and (2) SMPL market share gains from innovation and distribution. We also expect growth-accretive M&A incremental to our forecasts. Our $46 PT is based on 2.8x our CY21E-CY23E PEG (10% premium vs. Staples growth peers vs. current 15% discount)."
Shares of The Simply Goods Group closed at $34.50 yesterday.
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