TD Cowen analyst Robert Moskow maintained a Hold rating on Conagra Brands today and set a price target of $19.00.
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Robert Moskow has given his Hold rating due to a combination of factors affecting Conagra Brands. The company is undergoing a significant reset in its margin structure to accommodate investment spending and inflationary pressures that surpass its pricing capabilities. Despite agreeing with the decision to invest, Moskow remains cautious about Conagra’s ability to return to positive top-line growth, primarily due to its focus on lower-income consumers and limited pricing power.
Conagra’s recent financial performance highlights these challenges, with a decline in organic sales and a miss in earnings per share due to broader consumer spending weaknesses and rising inflation. The company’s guidance for FY26 indicates minimal sales growth, significant EBIT margin compression, and a notable decline in EPS, driven by inflation, investment costs, and incentive compensation adjustments. While there is an expectation for positive sales growth and profit recovery in the latter half of FY26 and into FY27, Moskow views the risk profile of the business as still high, given its consumer base and current market conditions.
In another report released today, Stifel Nicolaus also reiterated a Hold rating on the stock with a $26.00 price target.