The recent pullback in Simply Good Foods Co.’s (NASDAQ:SMPL) shares offers “an attractive entry point” into a company offering stable growth in a volatile market, according to Stephens.
The Simply Good Foods Analyst: Ben Bienvenu upgraded the rating for Simply Good Foods from Equal-Weight to Overweight, while raising the price target from $44 to $45.
The Simply Good Foods Thesis: The company’s products offer a healthier option for people who like to snack, Bienvenu said.
"SMPL's brands are benefiting from increased snacking occasions driving incremental buyers into important categories like Snack Bars and Salty Snacks," the analyst wrote. “The company is also benefiting from advertising support, which has not been consistent across packaged food subcategories due to supply chain dislocations over the past 18 months."
Stephens believes Simply Good Foods' product portfolio is attractively positioned "at the intersection of better-for-you and grab-and-go, making it appealing to a broad range of consumers,” Bienvenu added.
SMPL Price Action: Shares of Simply Good Foods had risen by 3.84% to $40.75 around 11:15 a.m. on Monday, June 27.
