Wells Fargo analyst Christopher Carey maintained a Hold rating on Conagra Brands (CAG – Research Report) yesterday and set a price target of $23.00.
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Christopher Carey has given his Hold rating due to a combination of factors impacting Conagra Brands’ financial outlook. One of the primary reasons is the anticipated miss on current market expectations for both revenue and earnings per share in the upcoming fiscal quarter. This is attributed to a slowdown in consumer demand and potential challenges in exceeding shipment expectations, compounded by inflationary pressures and strategic pricing investments.
Additionally, Carey notes that the fiscal year 2026 estimates appear overly optimistic, necessitating a recalibration of expectations. The planned sale of the Chef Boyardee brand and other operational adjustments are expected to contribute to a gap in earnings compared to market forecasts. Despite Conagra’s relatively low valuation, the company’s leverage remains a concern, suggesting that until there is improved visibility on earnings, the stock’s valuation support may remain contentious.
Carey covers the Consumer Defensive sector, focusing on stocks such as Church & Dwight, Clorox, and Campbell Soup. According to TipRanks, Carey has an average return of 1.0% and a 48.40% success rate on recommended stocks.
In another report released on May 29, Jefferies also reiterated a Hold rating on the stock with a $23.00 price target.