Morgan Stanley analyst Megan Clapp reiterated an Equalweight rating and $24.00 price target on The Simply Goods Group (NASDAQ: SMPL)

The analyst commented, "Net, while a reset is not necessarily surprising given weak recent scanner trends and the CEO transition, the magnitude of the implied 2H step-down is likely worse than expected. As such, while the stock has already underperformed (- 28% YTD) and valuation remains inexpensive even on the updated FY26 outlook (~7x EV/EBITDA on our math based on yesterday’s close), we would expect shares to come under pressure, as results suggest a longer path to stabilization and shift the debate toward FY27 earnings power, the timing of a topline recovery, and the potential for more meaningful strategic actions."

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Shares of The Simply Goods Group closed at $14.41 yesterday.