11:16 AM EDT, 07/12/2024 (MT Newswires) -- Conagra Brands' ( CAG ) fiscal Q4 results Thursday showed some weakness on its topline, which was hit by consumer pressure, and the company issued 2025 guidance that came in below market expectations, RBC Capital Markets said in a note to clients Friday.

However, in the food manufacturing and food service company's two main categories -- Frozen and Snacks -- the company was able to "hold or grow market share in 80% of the combined business," RBC said.

Conagra's guidance was also "light of expectations in all major metrics as food softness lingers and consumers are still adjusting to a period of high prices," RBC said, though the investment firm's analysts noted Conagra's 2025 guidance "appears reasonable."

"Gross margins are expected to be stable as productivity is expected to offset inflation," RBC said.

RBC cut its price target on Conagra to $29 from $30, and kept its rating at sector perform.

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