Amplify Snack Brands Downgraded, Removed From Goldman's Americas Buy List

Goldman Sachs downgraded shares of Amplify Snack Brands Inc BETR to Neutral and removed it from its Americas Buy List. The firm attributed the downgrade to its view that upside to its price target has shrunk.

Analyst Jason English said his fundamental view of the company is unchanged. Although the analyst sees best-in-class organic sales growth from the company, he expects a moderation in growth, as its flagship Skinny brand slows on distribution saturation.

Updating Estimates

Incorporating the recent acquisition of Crisps Topco Limited and Subsidiaries into its estimates, Goldman downwardly revised its 2016 earnings per share estimate by 3.4 percent and 2017 estimate by 2.5 percent, while it raised its 2018 estimate by 7.4 percent.

Following the positive re-rating of the stock, Goldman believes valuation is no longer attractive. The firm expects modest upside to the fundamental component of its price target, with M&A seen as a driver. Goldman also sees the company as a potential acquisition target.

Goldman maintained its $12 price target on shares.

At time of writing, shares of Amplify Snack Brands were down 3.82 percent at $14.86.