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Research Alert: CFRA Keeps Hold Opinion On Shares Of Conagra Brands, Inc.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Conagra Brands, Inc.
Jun 25, 2025 12:15 PM

02:50 PM EDT, 06/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target price by $6 to $22 based on 10x our FY 26 (May) EPS of $2.23 (cut from $2.54; FY 25 trimmed to $2.34 from $2.36) vs the 15x long-term mean. Our revised estimates reflect ongoing sales softness in snacks and frozen foods, along with heightened cost pressures due to the company's exposure to proteins. CAG will report May-Q results on July 10. We expect a slight miss on the top line but EPS to be in line with or slightly beat expectations. All focus will be on the FY 26 outlook, which we think could fall short of expectations, as consensus calls for a low single-digit EPS decline versus our expectation of a mid single-digit decline. We expect FY 26 to be another heavy reinvestment year, as the industry seeks to stabilize volumes even if it comes at the expense of margins. CAG already has some of the lowest operating margins among packaged food peers, reflected in the company's discounted valuation. Shares yield 6.5%, the highest among its peer group.

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