How Analysts Reacted to Conagra Brands’ Q4 Results

A couple of analysts lowered price targets

Conagra Brands’ (CAG) weak fourth-quarter fiscal 2019 results led a couple of analysts to lower their price target on its stock. Citigroup reduced its price target to $34 from $36.

However, the majority of analysts continue to recommend a “buy” on Conagra Brands stock. Conagra Brands’ focus on growth avenues through the acquisition of in-vogue brands and divestiture of underperforming ones is likely to drive long-term growth. Moreover, its low valuation compared to peers is expected to support its stock.

How Analysts Reacted to Conagra Brands’ Q4 Results

Conagra Brands’ stock trades at a discount of 31% compared to its peer group average of 17.3x. Moreover, Conagra Brands’ adjusted earnings are expected to return to the growth trajectory and register mid-single-digit growth in fiscal 2020. However, near-term hiccups could continue to hurt.

Rating and price target

11 out of 14 analysts covering CAG stock recommend a “buy.” A couple of analysts suggest a “hold,” and one analyst has a “sell” rating. Analysts’ consensus price target of $32.38 per share on CAG implies an upside of 27.3% based on its closing price of $25.43 on June 27.