Simply Good Foods Price Target Lowered by UBS Ahead of Earnings

UBS lowered its price target on The Simply Good Foods Group (NASDAQ: SMPL) to $16 from $23 while maintaining a Neutral rating, with shares falling around 2% intraday Thursday.

The firm revised its estimates ahead of the company’s fiscal second-quarter 2026 earnings release, scheduled for April 9, citing weaker consumption trends.

UBS reduced its second-quarter EPS estimate to $0.37 from $0.39 and now expects organic sales to decline 6.0%, compared to its prior forecast of a 3.9% decline.

Since the company’s first-quarter earnings report, the stock has significantly underperformed the Consumer Staples Select Sector SPDR (XLP), declining by nearly 36%. The firm noted that investor sentiment appears increasingly negative based on recent discussions.

As a result, UBS indicated that market expectations have adjusted, with investors preparing for a potentially underwhelming quarter as demand conditions continue to deteriorate. The firm added that many investors believe the company’s top-line challenges may persist rather than being near resolution.