Morgan Stanley analyst Megan Alexander has maintained their neutral stance on CAG stock, giving a Hold rating yesterday.
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Megan Alexander’s rating is based on Conagra Brands’ recent financial performance and future outlook. The company reported weaker-than-expected results for the fourth quarter, with significant misses in topline, gross, and operating profits compared to consensus estimates. Additionally, the guidance for fiscal year 2026 earnings per share was significantly lowered, indicating a potential decline of 20-26% year-over-year. This reflects ongoing challenges such as weak organic sales growth and increased costs due to persistent inflation and tariffs.
Megan Alexander maintains a Hold rating as these concerns appear to be largely priced into the stock’s current valuation, which is compressed compared to its peers. The risk and reward seem balanced at this point, with the key factor being whether Conagra can achieve sustained improvements in organic sales growth in the latter half of the year. This improvement is crucial for informing the pace of margin recovery, which remains uncertain given the current macroeconomic environment.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $19.00 price target.
CAG’s price has also changed moderately for the past six months – from $25.940 to $19.490, which is a -24.87% drop .