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What Wall Street Analysts Recommend for Major Food Stocks


Dec. 20 2017, Updated 9:00 a.m. ET

Analysts are optimistic about MDLZ, KHC, and CAG stock

The majority of analysts providing the recommendations on Mondelēz (MDLZ), Conagra Brands (CAG), and Kraft Heinz (KHC) stock maintain a positive outlook on the prospects of these companies. Analysts expect these food stocks to benefit in coming quarters as the currency risk subsides and demand slowly picks up, driven by innovation-led products.

Of the 22 analysts covering Mondelēz stock, about 82.0% recommended a “buy” and 18.0% provided “hold” ratings. Analysts suggest a target price of $48.31 per share on MDLZ, which implies an upside potential of 12.7% to its closing price of $42.88 on December 12, 2017.

As for Kraft Heinz (KHC) stock, about 70.0% of the analysts provided a “buy” recommendation and 30.0% maintained a “hold.” Analysts gave a target price of $89.05 on KHC, which reflects an upside of 12.8%.

For Conagra Brands (CAG), 71.0% of the 14 analysts provided a “buy” rating, 21.0% recommended a “hold,” and 8.0% maintained a “sell” rating. The analyst target price of $40.29 suggests an upside of 7.3% based on the closing price of $37.55 on December 12.

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Analysts neutral on CPB, K, SJM, and GIS

Most of the analysts covering Campbell Soup (CPB), General Mills (GIS), J.M. Smucker (SJM), and Kellogg (K) stock gave “neutral” ratings. Campbell Soup and General Mills stock are trading higher than the analysts’ target price and have a negative implied return, as shown in the chart above.

Both companies are witnessing lower volumes. Their earnings are pressured due to the volume deleverage and the anticipated increase in costs.

Analysts remained on sidelines for Kellogg as its sales are expected to remain soft in the near term. The company’s bottom line is projected to grow at a healthy rate, thanks to the cost-saving measures in place.


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