Christopher Carey, an analyst from Wells Fargo, maintained the Sell rating on Conagra Brands. The associated price target was raised to $20.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Christopher Carey has given his Sell rating due to a combination of factors affecting Conagra Brands. Despite a positive start to the fiscal year with a stronger-than-expected performance in the first quarter, this was partly due to favorable timing in trade expenses and supply chain improvements, which are expected to reverse in the following quarter. The company faces challenges with high leverage and a significant dividend payout ratio, which could pressure its financial flexibility.
Moreover, while Conagra’s revenue and margins have shown some resilience, the consumption trends remain negative, and the company is expected to face tougher comparisons in the second quarter. Although there is some optimism for the second half of the year with easier revenue comparisons and margins tracking towards the fiscal year target, the overall outlook remains cautious. As a result, Carey maintains a conservative stance, reflecting the uncertainties and potential headwinds facing the company.
In another report released yesterday, Bank of America Securities also maintained a Sell rating on the stock with a $18.00 price target.