Conagra Brands price target lowered to $40, coverage transferred at BofA

BofA analyst Peter Galbo lowered the firm’s price target on Conagra Brands to $40 from $42 and keeps a Neutral rating on the shares as the analyst took over coverage of the stock. The firm’s updated P/E multiple is below packaged food peers to account for Conagra’s elevated leverage, but in line on an EV/EBITDA basis, the analyst tells investors. The company faces difficult pricing comps and is seeing higher degrees of elasticity relative to peers, said the firm, which believes this is largely reflected in the current multiple.