The Simply Goods Group (SMPL) PT Lowered to $20 at Stifel After Weaker Q2

Stifel analyst Matthew Smith lowered the price target on The Simply Goods Group (NASDAQ: SMPL) to $20.00 (from $32.00) while maintaining a Buy rating.

The analyst commented, "Simply Good Foods reported a weaker than expected second quarter and lowered its outlook for revenue and profit in FY26. Second quarter sales declined -9.4%, trailing the -6.4% consumption decline, and EBITDA of $55 million was down 18% reflecting the sales decline and a 350bps contraction in the gross margin. The company lowered its FY26 outlook across sales, gross margin, and EBITDA reflecting soft consumption trends and higher inflation/tariff costs including significantly reduced topline expectations in the second half of the year - now expected to be down in the low-double digit range. Simply’s near term priorities, communicated today, include strengthening the business model economics (i.e. margin recovery), a more disciplined focus in strategic choices (we believe growing Quest in the core categories), and rebuilding brand investment at attractive return hurdles. We continue with our Buy rating and lower our target price to $20."

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