Goldman Sachs analyst Leah Jordan downgraded the rating on Conagra Brands (CAG – Research Report) to a Hold today, setting a price target of $26.00.
Leah Jordan has given her Hold rating due to a combination of factors impacting Conagra Brands. A significant reason for this rating is the limited clarity regarding the company’s improvement trajectory, especially after facing its second operational setback within six months. This lack of visibility makes it challenging to predict a swift recovery.
Additionally, Leah notes that there is increasing competitive pressure, particularly from a major competitor focusing more on the frozen food segment, which could hinder Conagra’s recovery efforts. While Conagra does benefit from a low valuation, solid free cash flow, and a product portfolio that aligns with current consumer trends emphasizing higher protein and convenience, these positives are counterbalanced by headwinds such as intensified competition, elevated promotional activities, and rising input costs. Consequently, Leah sees a balanced risk-to-reward scenario for Conagra, with potentially more attractive investment opportunities available elsewhere.
According to TipRanks, Jordan is a 4-star analyst with an average return of 29.3% and a 65.52% success rate. Jordan covers the Consumer Defensive sector, focusing on stocks such as Mondelez International, Conagra Brands, and Kroger Company.
In another report released on February 19, Stifel Nicolaus also maintained a Hold rating on the stock with a $26.00 price target.