Conagra Brands: Balancing Growth Opportunities and Inflation Challenges with a Hold Rating

Bernstein analyst Alexia Burland Howard maintained a Hold rating on Conagra Brands today and set a price target of $21.00.

Alexia Burland Howard’s rating is based on a combination of factors that reflect both opportunities and challenges for Conagra Brands. The company has shown improvement in its underlying volume over seven consecutive quarters, and service levels have rebounded to impressive levels, which bodes well for future growth. However, the broader industry is facing uncertainties due to rising inflation, particularly influenced by tariffs and a recent government shutdown, which could impact the holiday season performance.
Despite these challenges, Conagra is implementing strategies to offset cost pressures, such as incremental pricing and a focus on productivity and operating leverage. The company’s strong innovation pipeline and its leading position in the frozen supply chain sector are competitive advantages. Nevertheless, inflation, especially in protein costs, remains a significant risk. These mixed factors contribute to the Hold rating, as the stock is expected to perform in line with the market with a price target of $21.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is neutral on the stock.