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Research Alert: CFRA Maintains Hold Opinion On Shares Of Conagra Brands, Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Conagra Brands, Inc.
Apr 2, 2026 8:23 AM

10:50 AM EDT, 04/02/2026 (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 to $16 from $19, about 9x our FY 27 (May) EPS of $1.79 (cut from $1.90 but above the current $1.72 consensus; FY 26 also lowered to $1.73 from $1.76). This multiple represents a steep discount to the company's long-term average of 14x, though it sits just below the current peer average of roughly 10x. The company's latest quarter was slightly better than expected, though the unexpected headwind was in the non-core Ardent Mills joint venture, where lower wheat prices/volatility have led to lower commodity trading upside. Given the recent strength in wheat, including heightened volatility due to the war in Iran, we could see upside to Ardent Mills in FY 27. In addition, we could see easing cost pressures in FY 27 (particularly on the protein side), which combined with about 4% productivity savings, could result in modest gross margin expansion. Still, we flag the company's elevated dividend payout (about 80%; 9% dividend yield) and leverage ratio (about 3.8x).

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