On Wednesday, DA Davidson maintained a Neutral rating on The Simply Good Foods Company (NASDAQ:SMPL) with a steady price target of $33.00.
The firm's analysts acknowledged the company's first-quarter fiscal year 2025 performance as solid, noting a gross margin increase counterbalanced by higher operational expenses and a slight miss in net sales due to timing.
They highlighted the effectiveness of the company's current innovation cycle, which seems to be outperforming previous years, and the diminishing drag from the less successful parts of the portfolio. This observation bolsters confidence in the company's on-target performance for fiscal year 2025, ending in August, and even the potential for exceeding targets in fiscal year 2026 as OWYN becomes part of the core offerings and assuming a moderation in Atkins' decline.
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