Analyst Peter Galbo from Bank of America Securities reiterated a Sell rating on Conagra Brands and keeping the price target at $18.00.
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Peter Galbo has given his Sell rating due to a combination of factors impacting Conagra Brands. The company is navigating a challenging fiscal year 2026, with pressures from inflation and tariffs expected to affect its financial performance. Conagra’s exposure to tariffs, particularly those related to steel and aluminum, presents a significant headwind, while core inflation is anticipated to rise by 4%.
Additionally, Conagra is facing consumer pressure in the North American market, with shoppers increasingly sensitive to pricing. The company’s strategy to prioritize volume over value in high-growth areas and focus on margins in cash-generative businesses reflects an effort to mitigate these challenges. Despite these strategies, the company’s earnings per share estimates have been adjusted downward, and the dividend payout ratio remains high, which could impact future financial flexibility.