Conagra Brands: Wall Street Analysts’ Recommendations

Analysts’ ratings and target price

Most of the Wall Street analysts covering Conagra Brands (CAG) stock are optimistic about the company’s prospects. Among the 12 analysts proving recommendations on Conagra stock, 11 analysts suggest a “buy,” while one analyst has a “hold” rating. Analysts have a consensus target price of $42.08 per share on Conagra stock, which implies an upside potential of 21.4% based on its closing price of $34.65 on October 8.

Conagra Brands stock has fallen 8.0% on a YTD (year-to-date) basis as of October 8. Most of the decline followed the company’s first-quarter results on September 27. Conagra Brands missed analysts’ expectations and reported low sales and a low EPS growth rate. The company’s margins remained weak.

Conagra Brands: Wall Street Analysts’ Recommendations

However, analysts expect the company to benefit from its acquired brands and the mix shift towards high margin products. The company’s Pinnacle Foods acquisition will likely bolster its long-term prospects. However, we think that the company’s near-term performance might not be impressive. Tough YoY (year-over-year) comparisons, margin headwinds, and increased interest expenses could continue to restrict the upside.

Peers’ outlook

Wall Street analysts maintained a favorable outlook on Mondelēz (MDLZ) and Kraft Heinz (KHC) stock in the packaged food industry. To learn more about what Wall Street analysts recommend for food stocks, read Food Stocks Leaving a Sour Taste: What Wall Street Recommends.