Morgan Stanley on The Simply Goods Group (SMPL): results suggest 'longer path to stabilization'

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."

For an analyst ratings summary and ratings history on The Simply Goods Group click here. For more ratings news on The Simply Goods Group click here.

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

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